..........(name of credible
witness).........., a credible witness personally known to me, to be the person
whose name is subscribed to the above instrument and he or she proved he or she
signed the instrument.]

This
instrument was acknowledged before me on .......... (date) .......... by ..........
(name of person) ..........who personally appeared before me and whose identity I
verified upon the oath of ..........(name of credible witness) .........., a credible witness personally known to
me.

.......................................................

(Signature
of notarial officer)

Sec. 29. NRS 240.170 is
hereby amended to read as follows:

240.170 The [governor]secretary of state
may, when in his judgment it may be necessary, appoint in each of the United
States, and in each of the territories and districts thereof, and in each foreign
state, kingdom, province, territory and colony, one or more commissioners of
deeds, to continue in office 4 years, unless sooner removed by him.

Sec. 30. NRS 240.210 is
hereby amended to read as follows:

240.210 Every commissioner of deeds
appointed by the [governor]secretary of state shall
have power:

1. To administer oaths.

2. To take and certify depositions and
affidavits to be used in this state.

3. To take the acknowledgment or proof of
any deed or other instrument to be recorded in this state, and duly certify the
same under his hand and official seal.

Sec. 31. NRS 240.250 is
hereby amended to read as follows:

240.250 The [governor]secretary of state
is empowered to appoint and commission commissioned abstracters in and for the
several counties of this state, in any number in which applications may be made
to him, as in his judgment may be deemed advisable.

Sec. 32. NRS 240.320 is
hereby amended to read as follows:

240.320 The [governor]secretary of state
may at any time, for cause, revoke the commission of [any]a commissioned
abstracter.

Sec. 33. NRS 240.140 and
240.1675 are hereby repealed.

Sec. 34. The amendatory
provisions of this act do not apply to offenses that are committed before
October 1, 1997.

Sec. 35. The provisions of
subsection 1 of NRS 354.599 do not apply to any additional expenses of a local
government that are related to the provisions of this act.

________

κ1997
Statutes of Nevada, Page 942κ

CHAPTER 277, AB 434

Assembly Bill No.
434Committee on Ways and Means

CHAPTER 277

AN ACT making a supplemental appropriation
from the state highway fund to the Administrative Services Division of the
Department of Motor Vehicles and Public Safety for unanticipated operating
expenses; and providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. There is hereby
appropriated from the state highway fund to the Administrative Services
Division of the Department of Motor Vehicles and Public Safety the sum of
$453,788 for unanticipated operating expenses. This appropriation is
supplemental to that made by section 28 of chapter 446, Statutes of Nevada
1995, at page 1392.

Sec. 2. This act becomes
effective upon passage and approval or on June 30, 1997, whichever occurs
earlier.

AN ACT relating to trade practices;
requiring a manufacturer to provide an express warranty for a device that
enhances the ability of a person to perform a major life activity; and
providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 597 of NRS
is hereby amended by adding thereto the provisions set forth as sections 2 to
13, inclusive, of this act.

Sec. 2. As used in sections 2 to 13, inclusive, of this act, unless
the context otherwise requires, the words and terms defined in sections 3 to 6,
inclusive, of this act, have the meanings ascribed to them in those sections.

Sec. 3. Assistive device means a device purchased or accepted for
delivery in this state that enhances the ability of a person to perform a major
life activity, including, but not limited to:

1. Manual
or motorized wheelchairs, scooters and other devices that enhance the ability
of a person to move;

2. Hearing
aids, devices for telecommunication and any other devices that enhance the
ability of a person to hear;

3. Voice
synthesizers, optical scanners, Braille printers and any other devices that
enhance the ability of a person to communicate;

Sec. 6. Manufacturer means a person who manufactures or assembles
assistive devices or an agent of that person, including an importer or a
distributor. The term does not include a dealer.

Sec. 7. 1. A manufacturer who, directly or through a
dealer, sells or leases to a consumer in this state an assistive device that
has not been previously sold or leased shall provide an express warranty for
that device. The express warranty does not:

(a) Take
effect until the consumer takes possession of the device; and

(b) Expire
less than 1 year after the delivery of the device to the consumer.

2. If
a manufacturer fails to provide an express warranty required by this section,
the assistive device shall be deemed to be covered by the express warranty of
the manufacturer.

Sec. 8. If an assistive device does not conform to the express
warranty of the manufacturer and the consumer reports the nonconformity to the
manufacturer or dealer and makes the assistive device available for repair
before the expiration of the express warranty, the manufacturer or dealer shall
make the repairs necessary to conform the assistive device to the express
warranty without regard to whether the repairs will be made after the
expiration of the express warranty.

Sec. 9. 1.If, after a reasonable number of repairs, the manufacturer
or dealer is unable to conform the assistive device to the express warranty and
the defect or condition causing the nonconformity substantially impairs the use
and value of the assistive device to the consumer and is not the result of
abuse, neglect or unauthorized modifications or alterations of the assistive
device by the consumer, the manufacturer shall:

(a)Replace the assistive device with an
assistive device of the same model and having the same features as the replaced
device, or if such a device cannot be delivered to the consumer within a
reasonable period, a comparable assistive device substantially similar to the
replaced device; or

(b)Accept the return of the assistive
device from the consumer and refund to the consumer, within 30 days after the
return of the device, the purchase price of the device, including all sales
taxes and finance charges paid by the consumer, and any other expenses related
to the purchase and use of the assistive device, less a reasonable allowance
for use of the assistive device. As used in this paragraph reasonable
allowance for use means that amount that
is directly attributable to the use of the device by the consumer before his
first report of the nonconformity to the manufacturer or dealer and during any
subsequent period that the assistive device is not out of service for repairs.

amount that is
directly attributable to the use of the device by the consumer before his first
report of the nonconformity to the manufacturer or dealer and during any
subsequent period that the assistive device is not out of service for repairs.

2.It is presumed that a reasonable number
of repairs have been undertaken to conform an assistive device to an applicable
express warranty if:

(a)The same nonconformity has been subject
to repair three or more times by the manufacturer or dealer within the time the
express warranty is in effect, but the nonconformity continues to exist; or

(b)The assistive device is unavailable for
use by the consumer because of a nonconformity for a cumulative total of 30
days or more within the period the express warranty is in effect, except that
if the necessary repairs cannot be made for reasons which are beyond the
control of the manufacturer or dealer, the number of days required to give rise
to the presumption must be appropriately extended.

Sec. 10. 1. If an assistive device covered by an express
warranty of a manufacturer is made available for repair pursuant to section 8
of this act and:

(a) The
device is not repaired within 10 working days, including the day on which the
assistive device is made available for repair; or

(b) The
defect or malfunction that is the cause of nonconformity is the same defect or
malfunction for which the assistive device has been made available for repair
two or more times,

the
manufacturer shall provide to the consumer, for the duration of the period of
repair, a reimbursement of not more than $30 each day for the rental of an
assistive device.

2. If
a dealer does not deliver the assistive device to the manufacturer in a timely
manner that allows the manufacturer to repair the device within 10 working
days, the manufacturer may bring an action against the dealer for reimbursement
of any money that the manufacturer is required to pay to a consumer pursuant to
subsection 1.

Sec. 11. An assistive device that is returned to a manufacturer by a
consumer in this state pursuant to section 9 of this act may not be sold or
leased in this state unless the reason for the return of the assistive device
is disclosed to the prospective consumer.

Sec. 12. 1.In addition to any other remedy available to a consumer, a
consumer may bring an action to recover any damages caused by a manufacturer or
dealer who violates any of the provisions of sections 2 to 13, inclusive, of
this act.

2. The
court shall award to the prevailing party not more than twice the amount of the
damages, and costs, including attorneys fees and any equitable relief that the
court determines is appropriate.

Sec. 13. 1. The provisions of sections 2 to 13,
inclusive, of this act, do not limit any rights or remedies a consumer may have
pursuant to any other law or agreement.

2. A
waiver by a consumer of any of the rights provided pursuant to sections 2 to
13, inclusive, of this act, is void.

AN ACT relating to probation; requiring
that a probationer who is not eligible for an honorable discharge from
probation receive a dishonorable discharge under certain circumstances; and
providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 176.245 is
hereby amended to read as follows:

176.245 [Every
defendant:

1. Whose probation
has been revoked; or

2. Whose]A defendant whose
term of probation has expired [, and:

(a)]and:

1. Whose
whereabouts are unknown;

[(b)]2. Who has
failed to make restitution in full as ordered by the court, without a verified
showing of economic hardship; or

[(c)]3. Who has
otherwise failed to qualify for an honorable discharge as provided in NRS
176.225,

is not eligible for an honorable discharge and [may]must be given a dishonorable discharge. A
dishonorable discharge releases the probationer from any further obligation,
except a civil liability arising on the date of discharge for any unpaid
restitution, but does not entitle the probationer to any privilege conferred by
NRS 176.225.

________

κ1997
Statutes of Nevada, Page 946κ

CHAPTER 280, AB 12

Assembly Bill No.
12Committee on Health and Human Services

CHAPTER 280

AN ACT relating to the Western Regional
Higher Education Compact; authorizing the commissioners of the Western
Interstate Commission for Higher Education from the State of Nevada to require
certain students to perform community service as a condition to receiving a
support fee; and providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 397 of NRS
is hereby amended by adding thereto a new section to read as follows:

1. The
provisions of this section apply only to support fees received by a student on
or after July 1, 1997.

2. The
three commissioners from the State of Nevada, acting jointly, may require a
student who is certified to study to practice in a profession which could
benefit a medically underserved area of this state, as that term is defined by
the officer of rural health of the University of Nevada School of Medicine, to
practice in such an area or to practice in an area designated by the Secretary
of Health and Human Services:

(b) Pursuant
to 42 U.S.C. § 254e, as a health professional shortage area,

as a condition
to receiving a support fee.

3. If
a person agrees to practice in a medically underserved area of this state
pursuant to subsection 2 for at least 2 years, the three commissioners from the
State of Nevada, acting jointly, may forgive the portion of the support fee
designated as the loan of the person.

4. If
a person returns to this state but does not practice in a medically underserved
area of this state pursuant to subsection 2 for at least 2 years, the three
commissioners from the State of Nevada, acting jointly, shall assess a default
charge in an amount not less than three times the portion of the support fee
designated as the loan of the person, plus interest.

5. As
used in this section, a profession which could benefit a medically underserved
area of this state includes, without limitation, dentistry, physical therapy,
pharmacy and practicing as a physicians assistant.

Sec. 2. NRS 397.0615 is
hereby amended to read as follows:

397.0615 Financial support provided to a
student who is chosen by the three commissioners from the State of Nevada to
receive such support from the Western Interstate Commission for Higher
Education must be provided in the form of a support fee. [Twenty-five]Except as otherwise provided in section 1 of this act, 25
percent of the support fee is a loan that the student must repay with interest
pursuant to NRS 397.063 or 397.064, as appropriate. Seventy-five percent of the
support fee is a stipend that the student is not required
to repay, except as otherwise provided in NRS 397.0653.

student is not required to repay, except as otherwise
provided in NRS 397.0653.

Sec. 3. NRS 397.064 is
hereby amended to read as follows:

397.064Loans, from the Western
Interstate Commission for Higher Educations fund for student loans, to
students who enter the program on or after July 1, 1985, must be made upon the
following terms:

1. All loans must bear interest at 8
percent per annum from the first day of the academic term for which the student
received the loan.

2. [Each]Except as otherwise provided in
section 1 of this act, each student receiving a loan must repay
the loan with interest following the termination of his education or completion
of his internship for which the loan is made.

3. The
loan must be repaid in monthly installments over the period allowed, as set forth in subsection 4,
with the first installment due 1 year after the date of the termination of his
education or the completion of his internship for which the loan is made. The
amounts of the installments may not be less than $50 and may be calculated to
allow a smaller payment at the beginning of the repayment period, with each
succeeding payment gradually increasing so that the total amount due will have
been paid within the period allowed for repayment.

4. The
three commissioners from the State of Nevada, acting jointly, shall, or shall
delegate to the director of the Western Interstate Commission for Higher
Education the power to, schedule the repayment within the following periods:

(a) Five years for loans which total less than
$10,000.

(b) Eight years for loans which total $10,000 or
more but less than $20,000.

(c) Ten years for loans which total $20,000 or
more.

[3.]5. A
student loan may not exceed 50 percent of the student fees for any academic year.

[4.]6.A
delinquency charge may be assessed on any installment delinquent 10 days or
more in the amount of 8 percent of the installment or $4, whichever is greater,
but not more than $15.

[5.]7. The
reasonable costs of collection and an attorneys fee may be recovered in the
event of delinquency.

Sec. 4. This act becomes
effective on July 1, 1997.

________

κ1997
Statutes of Nevada, Page 948κ

CHAPTER 281, SB 294

Senate Bill No.
294Committee on Human Resources and Facilities

CHAPTER 281

AN ACT relating to financial
administration; providing standards for the investment and management of money
for eleemosynary purposes; authorizing the disclosure of the financial records
of postsecondary educational institutions under certain circumstances; and
providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 164 of NRS
is hereby amended by adding thereto the provisions set forth as sections 2 to
15, inclusive, of this act.

Sec. 2. Sections 2 to 15, inclusive, of this act may be cited as the
Uniform Management-of-Institutional-Funds Act.

Sec. 3. As used in sections 2 to 15, inclusive, of this act, the
words and terms defined in sections 4 to 9, inclusive, of this act have the
meanings ascribed to them in those sections.

Sec. 4. Donative instrument means a will, deed, grant, conveyance,
agreement, memorandum, writing or other governing document, including the terms
of any institutional solicitations from which an institutional fund resulted,
under which property is transferred to or held by an institution as an
institutional fund.

Sec. 5. Endowment fund means an institutional fund, or any part of
the fund, not wholly expendable by the institution currently under the terms of
the applicable donative instrument.

Sec. 6. Governing board means the body responsible for the
management of an institution or institutional fund.

Sec. 7. Historical monetary value means the aggregate fair value
in money of an endowment fund at the time it became an endowment fund, each
subsequent donation to the fund at the time it is made, or each accumulation made
pursuant to a direction in the applicable donative instrument at the time the
accumulation is added to the fund.

Sec. 8. Institution means an organization, whether or not
incorporated, organized and operated exclusively for educational, religious,
charitable or other eleemosynary purposes, or a governmental organization to
the extent that it holds funds exclusively for any of these purposes.

Sec. 9. Institutional fund means a fund held by an institution for
its exclusive use, benefit or purposes, but does not include a fund held for an
institution by a trustee that is not an institution or a fund in which a
beneficiary that is not an institution has an interest other than possible
rights that could arise upon violation or failure of the purposes of the fund.

Sec. 10. 1. A governing board may appropriate for
expenditure for the uses and purposes for which an endowment fund is
established so much of the net appreciation, realized and unrealized, in the
fair value of the assets of the fund over the historical monetary value of the
fund as is prudent under the standard established by section 14 of this act.
This section does not limit the authority of the governing board to expend
funds as permitted under other law, the
terms of the applicable donative instrument or the charter of the institution.

as permitted
under other law, the terms of the applicable donative instrument or the charter
of the institution.

2. A
determination of historical monetary value made in good faith by the
institution is conclusive.

Sec. 11. 1. Section 10 of this act does not apply if the
applicable donative instrument indicates the donors intention that net
appreciation may not be expended. A restriction upon the expenditure of net
appreciation may not be implied from a designation of a gift as an endowment,
or from a direction or authorization in the applicable donative instrument to
use only income, interest, dividends, or rents, issues or profits, or
to preserve the principal intact, or a direction that contains other words of
similar import.

2. This
rule of construction applies to donative instruments executed or in effect
before, on or after October 1, 1997.

Sec. 12. In addition to an investment otherwise authorized by law or
by the applicable donative instrument, and without restriction to investments a
fiduciary may make, a governing board, subject to any specific limitations set
forth in the applicable donative instrument or in the applicable law other than
law relating to investments by a fiduciary, may:

1. Invest
and reinvest an institutional fund in any real or personal property deemed
advisable by the governing board, whether or not it produces a current return,
including mortgages, stocks, bonds, debentures and other securities of profit
or nonprofit corporations, shares in or obligations of associations,
partnerships or natural persons, and obligations of any government or
governmental subdivision or instrumentality;

2. Retain
property contributed by a donor to an institutional fund for as long as the
governing board deems advisable;

3. Include
all or any part of an institutional fund in any pooled or common fund
maintained by the institution; and

4. Invest
all or part of an institutional fund in any other pooled or common fund
available for investment, including shares or interests in regulated investment
companies, mutual funds, common trust funds, investment partnerships, real
estate investment trusts or similar organizations in which funds are commingled
and investments are determined by persons other than the governing board.

Sec. 13. Except as otherwise provided by the applicable donative
instrument or by applicable law relating to governmental institutions or funds,
a governing board may:

1. Delegate
to its committees, officers or employees of the institution or the fund, or agents,
including investment counsel, the authority to act in place of the board in
investment and reinvestment of institutional funds;

2. Contract
with independent investment advisers, investment counsel or managers, banks, or
trust companies, so to act; and

3. Authorize
the payment of compensation for advisory or managerial services.

Sec. 14. 1. In the administration of the powers to
appropriate appreciation, to make and retain investments, and to delegate
management of the investment of institutional funds or of property held as an
investment, members of a governing board shall exercise ordinary care and
prudence, appropriate to the character of
the institution, under the facts and circumstances prevailing at the time of
the action or decision.

appropriate to
the character of the institution, under the facts and circumstances prevailing
at the time of the action or decision. In so doing, they shall consider present
and future needs of the institution in carrying out its educational, religious,
charitable or other eleemosynary purposes, present and anticipated financial
requirements, expected total return on its investments, price level trends and
general economic conditions.

2. Each
investment must be considered in its relation to other investments made or
contemplated.

Sec. 15. 1. With the written consent of the donor, a
governing board may release, in whole or in part, a restriction imposed by the
applicable donative instrument on the use or investment of an institutional
fund.

2. If
the written consent of a donor cannot be obtained by reason of his death,
disability, unavailability or impossibility of identification, the governing
board may apply in the name of the institution to the district court for
release of a restriction imposed by the applicable donative instrument on the
use or investment of an institutional fund. The attorney general must be
notified of the application and given an opportunity to be heard. If the court
finds that the restriction is obsolete, inappropriate or impracticable, it may
by order release the restriction in whole or in part. A release under this
subsection may not change an endowment fund to a fund that is not an endowment
fund.

3. A
release under this section may not allow a fund to be used for purposes other
than the educational, religious, charitable or other eleemosynary purposes of
the institution affected.

4. This
section does not limit the application of the doctrine of applying a charitable
gift as nearly as possible in conformity with the intention of the donor.

Sec. 16. NRS 394.026 is
hereby amended to read as follows:

394.026 Confidential means information
that is subject to disclosure only to:

1. The attorney general;

2. A member of the commission or its
staff; or

3. As deemed appropriate by the
administrator, a person responsible for reviewing the curriculum or financial records of a
postsecondary educational institution.

Sec. 17. This act becomes
effective upon passage and approval.

________

κ1997
Statutes of Nevada, Page 951κ

CHAPTER 282, SB 296

Senate Bill No.
296Senator Schneider

CHAPTER 282

AN ACT relating to shooting ranges;
providing that a shooting range does not constitute a nuisance in certain
circumstances; and providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 40.140 is
hereby amended to read as follows:

40.140 1. Except as
otherwise provided in [subsection 2,]this section,
anything which is injurious to health, or indecent and offensive to the senses,
or an obstruction to the free use of property, so as to interfere with the
comfortable enjoyment of life or property, is a nuisance, and the subject of an
action. The action may be brought by any person whose property is injuriously
affected, or whose personal enjoyment is lessened by the nuisance, and by the
judgment the nuisance may be enjoined or abated, as well as damages recovered.

2. It is presumed:

(a) That an agricultural activity conducted on
farmland, consistent with good agricultural practice and established before
surrounding nonagricultural activities is reasonable. Such activity does not
constitute a nuisance unless the activity has a substantial adverse effect on
the public health or safety.

(b) That an agricultural activity which does not
violate a federal, state or local law, ordinance or regulation constitutes good
agricultural practice.

3. A
shooting range does not constitute a nuisance with respect to any noise
attributable to the shooting range if the shooting range is in compliance with
the provisions of all applicable statutes, ordinances and regulations
concerning noise:

(a) As
those provisions existed on October 1, 1997, for a shooting range in operation
on or before October 1, 1997; or

(b) As
those provisions exist on the date that the shooting range begins operation,
for a shooting range that begins operation after October 1,1997.

A shooting
range is not subject to any state or local law related to the control of noise
that is adopted or amended after the date set forth in paragraph (a) or (b), as
applicable, and does not constitute a nuisance for failure to comply with any
such law.

4. As
used in this section, shooting range means an area designed and used for
archery or sport shooting, including, but not limited to, sport shooting that
involves the use of rifles, shotguns, pistols, silhouettes, skeet, trap, black
powder or other similar items.

Sec. 2. NRS 202.450 is
hereby amended to read as follows:

202.450 1. A public nuisance
is a crime against the order and economy of the state.

(a) Wherein any gambling, bookmaking or pool
selling is conducted without a license as provided by law, or wherein any
swindling game or device, or bucket shop, or any agency therefor is conducted,
or any article, apparatus or device useful therefor is kept;

(b) Wherein any fighting between animals or
birds is conducted;

(c) Wherein any dog races are conducted without
a license as provided by law;

(d) Wherein any intoxicating liquors are kept
for unlawful use, sale or distribution; or

(e) Where vagrants resort,

is a public nuisance.

3. Every act unlawfully done and every
omission to perform a duty, which act or omission:

(a) Annoys, injures or endangers the safety,
health, comfort or repose of any considerable number of persons;

(d) In any way renders a considerable number of
persons insecure in life or the use of property,

is a public nuisance.

4. Agricultural activity conducted on
farmland consistent with good agricultural practice and established before
surrounding nonagricultural activities is not a public nuisance unless it has a
substantial adverse effect on the public health or safety. It is presumed that
an agricultural activity which does not violate a federal, state or local law,
ordinance or regulation constitutes good agricultural practice.

5. A
shooting range is not a public nuisance with respect to any noise attributable
to the shooting range if the shooting range is in compliance with the
provisions of all applicable statutes, ordinances and regulations concerning
noise:

(a) As
those provisions existed on October 1, 1997, for a shooting range that begins
operation on or before October 1, 1997; or

(b) As
those provisions exist on the date that the shooting range begins operation,
for a shooting range in operation after October 1, 1997.

A shooting
range is not subject to any state or local law related to the control of noise
that is adopted or amended after the date set forth in paragraph (a) or (b), as
applicable, and does not constitute a nuisance for failure to comply with any
such law.

6. As
used in this section, shooting range has the meaning ascribed to it in NRS
40.140.

Sec. 3. NRS 244.363 is
hereby amended to read as follows:

244.363[The]Except as otherwise provided in subsection 3 of NRS 40.140
and subsection 5 of NRS 202.450, the boards of county
commissioners in their respective counties may, by ordinance regularly enacted,
regulate, control and prohibit, as a public nuisance, excessive noise which is
injurious to health or which interferes unreasonably with the comfortable enjoyment of life or property within the boundaries
of the county.

comfortable enjoyment of life or property within the
boundaries of the county.

Sec. 4. NRS 266.335 is
hereby amended to read as follows:

266.335 The
city council may:

1. [Determine]Except as otherwise provided in
subsection 3 of NRS 40.140 and subsection 5 of NRS 202.450, determine
by ordinance what shall be deemed nuisances.

2. Provide for the abatement, prevention
and removal of such nuisances at the expense of the person creating, causing or
committing such nuisances.

3. Provide that such expense of removal [shall be]is a lien upon the property upon which the
nuisance is located. Such lien [shall:]must:

(a) Be perfected by filing with the county
recorder a statement by the city clerk of the amount of expenses due and unpaid
and describing the property subject to the lien.

(b) Be coequal with the latest lien thereon to
secure the payment of general taxes.

(c) Not be subject to extinguishment by the sale
of any property on account of the nonpayment of general taxes.

(d) Be prior and superior to all liens, claims,
encumbrances and titles other than the liens of assessments and general taxes.

4. Provide any other penalty or
punishment of persons responsible for such nuisances.

Sec. 5. NRS 268.412 is
hereby amended to read as follows:

268.412[The]Except as otherwise provided in subsection 3 of NRS 40.140
and subsection 5 of NRS 202.450, the city council or other
governing body of a city may, by ordinance regularly enacted, regulate, control
and prohibit, as a public nuisance, excessive noise which is injurious to
health or which interferes unreasonably with the comfortable enjoyment of life
or property within the boundaries of the city.

________

κ1997
Statutes of Nevada, Page 954κ

CHAPTER 283, SB 248

Senate Bill No.
248Committee on Commerce and Labor

CHAPTER 283

AN ACT relating to real estate; providing
for the regulation of the business of property management; prohibiting a person
from acting as a property manager without the proper license and a permit
issued by the real estate division of the department of business and industry;
revising provisions governing the trust account of a real estate broker;
amending the grounds for disciplinary action by the real estate commission;
providing a penalty; and providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 645 of NRS
is hereby amended by adding thereto the provisions set forth as sections 2 to
6.5, inclusive, of this act.

Sec. 2. Property management means the physical, administrative or
financial maintenance and management of real property, or the supervision of
such activities for a fee, commission or other compensation or valuable
consideration, pursuant to a brokerage agreement.

Sec. 3. Property manager means a person engaged in property
management who, as an employee or independent contractor, is associated with a
licensed real estate broker, whether or not for compensation.

Sec. 4. 1. A person who is licensed pursuant to this
chapter as a real estate broker, real estate broker-salesman or real estate
salesman may apply to the real estate division for a permit to engage in
property management.

2. An
applicant for a permit must:

(a) Furnish
proof satisfactory to the division that he has successfully completed at least
24 classroom hours of instruction in property management; and

(b) Comply
with all other requirements established by the commission for the issuance of a
permit.

3. A
permit expires, and may be renewed, at the same time as the license of the
holder of the permit.

4. An
applicant for the renewal of a permit must:

(a) Furnish
proof satisfactory to the division that he has successfully completed at least
3 of the hours of the continuing education required for the renewal of his
license pursuant to NRS 645.575 in an approved educational course, seminar or
conference concerning property management; and

(b) Comply
with all other requirements established by the commission for the renewal of a
permit.

5. The
commission may adopt such regulations as it determines are necessary to carry
out the provisions of this section. The regulations may, without limitation:

(a) Establish
additional requirements for the issuance or renewal of a permit.

(b) Establish
a fee for the issuance and renewal of a permit.

(c) Set
forth standards of education for the approval of a course of instruction to
qualify a person for a permit pursuant to this section.

Sec. 5. 1. To engage in the business of property
management in this state:

(a) A
partnership shall designate one of its members;

(b) A
corporation shall designate one of its officers or employees;

(c) A
limited-liability company shall designate its manager; and

(d) A
broker who conducts business as a sole proprietor shall designate a person who
is licensed under the broker,

to submit an
application for a permit to engage in property management. The partnership,
corporation, limited-liability company or sole proprietor shall not engage in
the business of propertymanagement unless the person so designated has been issued a
permit to engage in property management by the real estate division.

2. If
the person designated to apply for a permit pursuant to subsection 1 meets the
qualifications for a permit set forth in section 4 of this act, the division
shall issue to that person a permit to engage in property management on behalf
of the partnership, corporation, limited-liability company or sole proprietor,
and thereupon he may perform all the acts of a property manager contemplated by
this chapter.

3. A
person to whom a permit has been issued pursuant to this section may act as a
property manager pursuant to the permit only on behalf of the partnership,
corporation, limited-liability company or sole proprietor, and not on his own
behalf. If that person ceases to be connected or associated with the
partnership, corporation, limited-liability company or sole proprietor, the
partnership, corporation, limited-liability company or sole proprietor shall
designate another person who meets the qualifications for a permit set forth in
section 4 of this act to hold the permit on behalf of the partnership, corporation,
limited-liability company or sole proprietor.

4. Any
member, officer or employee of a partnership, corporation or limited-liability
company, other than the person designated as the property manager pursuant to
subsection 1, who wishes to engage in the business of property management must
apply in his own name individually for a separate permit to engage in property
management. Pursuant to such a permit, the member, officer or employee of a
partnership, corporation or limited-liability company may act as a property
manager only as an officer or agent of the partnership, corporation or
limited-liability company, and not on his own behalf.

Sec. 6. 1. A real estate broker who holds a permit to
engage in property management shall not act as a property manager unless the
broker has first obtained a written brokerage agreement signed by the broker
and the client for whom the broker will manage the property.

2. A
brokerage agreement for property management must include, without limitation:

(a) The
term of the agreement;

(b) A
provision for the retention and disposition of deposits of the tenants of the
property during the term of the agreement;

(c) The
fee or compensation to be paid to the broker; and

(d) The
extent to which the broker may act as the agent of the client.

Sec. 6.5. 1. Except as otherwise provided in subsection
3, all fees, penalties and fines received by the division pursuant to the
provisions of sections 2 to 6.5, inclusive, of this act must be deposited with
the state treasurer for credit to the division. The money must be used by the
division for the administration of the provisions of sections 2 to 6.5,
inclusive, of this act.

2. The
division may delegate to a hearing officer or panel its authority to take any
disciplinary action against property managers, impose and collect fines
pursuant to the disciplinary action and deposit the money with the state
treasurer for credit to the division.

3. If
a hearing officer or panel is not authorized to take disciplinary action
pursuant to subsection 2, the division shall deposit the money collected from
the imposition of penalties and fines collected from property managers with the
state treasurer for credit to the state general fund. The division may present
a claim to the state board of examiners for recommendation to the interim
finance committee if money is needed to pay an attorneys fee or the costs of
an investigation, or both.

Sec. 7. NRS 645.0005 is
hereby amended to read as follows:

645.0005 As used in this chapter, unless
the context otherwise requires, the words and terms defined in NRS 645.001 to
645.040, inclusive, and sections 2
and 3 of this act, have the meanings ascribed to them in those
sections.

Sec. 8. NRS 645.030 is
hereby amended to read as follows:

645.030 1. Real estate
broker means a person who, for another and for compensation or with the
intention or expectation of receiving compensation:

(a) Sells, exchanges, options, purchases, rents,
or leases, or negotiates or offers, attempts or agrees to negotiate the sale,
exchange, option, purchase, rental, or lease of, or lists or solicits
prospective purchasers, lessees or renters of, [or
collects or offers, attempts or agrees to collect rental for the use of,]
any business or real estate or the improvements thereon or any modular homes or
other housing offered or conveyed with any interest in real estate; [or]

(b) Engages in or offers to engage in the
business of claiming, demanding, charging, receiving, collecting or contracting
for the collection of an advance fee in connection with any employment
undertaken to promote the sale or lease of business opportunities or real
estate by advance fee listing advertising or other offerings to sell, lease,
exchange or rent property [.]; or

(c) Engages
in or offers to engage in the business of property management.

2. Any person who, for another and for
compensation, aids, assists, solicits or negotiates the procurement, sale,
purchase, rental or lease of public lands is a real estate broker within the
meaning of this chapter.

3. The term does not include a person who
is employed by a licensed real estate broker to accept reservations on behalf
of a person engaged in the business of the rental of lodging for 31 days or
less, if the employee does not perform any tasks related
to the sale or other transfer of an interest in real estate.

does not perform any tasks related to the sale or other
transfer of an interest in real estate.

Sec. 9. NRS 645.230 is
hereby amended to read as follows:

645.230 1. It is unlawful
for any person, limited-liability company, partnership, association or
corporation to engage in the business of, act in the capacity of, advertise or
assume to act as, a [real]:

(a) Real
estate broker, real estate broker-salesman or real estate salesman within the
State of Nevada without first obtaining the appropriate license from the real
estate division as provided for in this chapter [.]; or

(b) Property
manager within the State of Nevada without first obtaining from the real estate
division as provided for in this chapter a license as a real estate broker,
real estate broker-salesman or real estate salesman and a permit to engage in
property management.

2. The real estate division may prefer a
complaint for a
violation of this section before any court of competent jurisdiction [and the real estate division]and may assist in
presenting the law or facts upon any trial for a violation of this section.

3. The district attorney of each county
shall prosecute all violations of this section in their respective counties in
which violations occur, unless prosecuted by the attorney general. Upon the
request of the administrator, the attorney general shall prosecute any
violation of this section in lieu of the district attorney.

Sec. 10. NRS 645.240 is
hereby amended to read as follows:

645.240 1. The provisions of
this chapter do not apply to, and the terms real estate broker and real
estate salesman do not include, any [person]:

(a) Person
who, as owner or lessor, performs any of the acts mentioned in NRS 645.030,
645.040, 645.230 and 645.260, with reference to property owned or leased by
them, or to the regular employees thereof with respect to the property so owned
or leased, where those acts are performed in the regular course of or as an
incident to the management of such property and the investment therein. For the
purposes of this [subsection,]paragraph, management
means activities which tend to preserve or increase the income from the
property by preserving the physical desirability of the property or maintaining
high standards of service to tenants. The term does not include sales
activities.

(b) Employee
of a real estate broker while engaged in the collection of rent for or on
behalf of the broker.

(c) Person
while performing the duties of a property manager for a property, if the person
maintains an office on the property and does not engage in property management
with regard to any other property.

(d) Person
while performing the duties of a property manager for a common-interest
community governed by the provisions of chapter 116 of NRS, a condominium
project governed by the provisions of chapter 117 of NRS, a time share governed
by the provisions of chapter 119A of NRS, or a planned unit development
governed by the provisions of chapter 278A of NRS, if the person is a member in
good standing of, and, if applicable, holds a current certificate, registration
or other similar form of recognition from, a nationally recognized organization
or association for persons managing such
properties that has been approved by the real estate division by regulation.

managing such
properties that has been approved by the real estate division by regulation.

2. Except as otherwise provided in NRS
645.606 to 645.6085, inclusive, the provisions of this chapter do not apply to:

(a) Any bank, thrift company, credit union,
trust company, savings and loan association or any mortgage or farm loan
association licensed under the laws of this state or of the United States, with
reference to property it has acquired for development, for the convenient
transaction of its business, or as a result of foreclosure of property
encumbered in good faith as security for a loan or other obligation it has
originated or holds.

(b) A corporation which, through its regular
officers who receive no special compensation for it, performs any of those acts
with reference to the property of the corporation.

(c) The services rendered by an attorney at law
in the performance of his duties as an attorney at law.

(d) A receiver, trustee in bankruptcy,
administrator or executor, or any other person doing any of the acts specified
in NRS 645.030 under the jurisdiction of any court.

(e) A trustee acting under a trust agreement,
deed of trust or will, or the regular salaried employees thereof.

(f) The purchase, sale or locating of mining
claims or options thereon or interests therein.

(g) The State of Nevada or a political
subdivision thereof.

Sec. 11. (Deleted by
amendment.)

Sec. 12. NRS 645.310 is
hereby amended to read as follows:

645.310 1. All deposits
accepted by every real estate broker or person registered as an owner-developer
pursuant to this chapter, which are retained by him pending consummation or
termination of the transaction involved, must be accounted for in the full
amount at the time of the consummation or termination.

2. Every real estate salesman or
broker-salesman who receives any money on behalf of a broker or owner-developer
shall pay over the money promptly to the real estate broker or owner-developer.

3. A real estate broker shall not
commingle the money or other property of his client with his own.

4. If a real estate broker receives money, as a
broker, which belongs to others, he shall promptly deposit the money in a
separate checking account located
in a bank in this state which must be designated a trust account. All down
payments, earnest money deposits, rents, or other money which he receives, on
behalf of his client or any other person, must be deposited in the account
unless all persons who have any interest in the money have agreed otherwise in
writing. A real estate broker may pay to any seller or the sellers authorized
agent the whole or any portion of such special deposit. The real estate broker is
personally responsible and liable for such deposit at all times. A real estate
broker shall not permit any advance payment of money belonging to others to be
deposited in the real estate brokers business or personal account or to be
commingled with any money he may have on deposit.

5. Every real estate broker required to
maintain a separate trust account shall keep records of all money deposited
therein. The records must clearly indicate the date and from whom he received
money, the date deposited, the dates of withdrawals, and other pertinent
information concerning the transaction, and must show clearly for whose account
the money is deposited and to whom the money belongs. The real estate broker shall balance each separate trust
account at least monthly. The real estate broker shall provide to the division,
on a form provided by the division, an annual accounting which shows an annual
reconciliation of each separate trust account. All such records
and money are subject to inspection and audit by the division and its
authorized representatives. All such separate trust accounts must designate the
real estate broker as trustee and provide for withdrawal of money without
previous notice.

6. Each real estate broker shall notify the division
of the names of the banks in which he maintains trust accounts and specify the
names of the accounts on forms provided by the division.

7. If
a real estate broker who has money in a trust account dies or becomes mentally
disabled, the division, upon application to the district court, may have a
trustee appointed to administer and distribute the money in the account with
the approval of the court. The trustee may serve without posting a bond.

Sec. 13. NRS 645.324 is
hereby amended to read as follows:

645.324 1. The commission may
require such forms of brokerage agreements which include provisions for the
payment of advance fees to be used, and such reports and forms of accounting to
be kept, made and submitted, and may adopt such rules and regulations as the
commission may determine to be necessary to carry out the purposes and intent
of NRS 645.322.

2. A licensee shall maintain, for review and audit by the
division, each brokerage agreement that is entered into by the licensee.

3. Any
violation of the rules, regulations, orders or requirements of the commission
constitutes grounds for disciplinary action against a licensee.

Sec. 14. NRS 645.630 is
hereby amended to read as follows:

645.630 The commission may require a
licensee or owner-developer to pay an administrative fine of not more than
$5,000 for each violation he commits or suspend, revoke or place conditions
upon his license or registration, or do both, at any time if the licensee or
owner-developer has, by false or fraudulent representation, obtained a license
or registration, or the licensee or owner-developer, whether or not acting as such,
is found guilty of:

1. Making any material misrepresentation.

2. Making any false promises of a
character likely to influence, persuade or induce.

3. Accepting a commission or valuable
consideration as a real estate broker-salesman or salesman for the performance
of any of the acts specified in this chapter or chapter 119 or 119A of NRS from
any person except the licensed real estate broker with whom he is associated or
the owner-developer by whom he is employed.

4. Representing or attempting to
represent a real estate broker other than the broker with whom he is
associated, without the express knowledge and consent of the broker with whom
he is associated.

5. Failing to maintain, for review and audit by the division,
each brokerage agreement governed by the provisions of this chapter and entered
into by the licensee.

6. Failing,
within a reasonable time, to account for or to remit any money which comes into
his possession and which belongs to others.

[6.]7.If he is required to maintain a trust
account:

(a) Failing
to balance the trust account at least monthly; and

(b) Failing
to submit to the division an annual accounting of the trust account as required
in NRS 645.310.

8. Commingling
the money or other property of his clients with his own or converting the money
of others to his own use.

[7.]9. In the
case of a broker-salesman or salesman, failing to place in the custody of his
licensed broker or owner-developer, as soon as possible, any deposit or other
money or consideration entrusted to him by any person dealing with him as the
representative of his licensed broker.

[8.]10. Accepting
other than cash as earnest money unless that fact is communicated to the owner
before his acceptance of the offer to purchase and that fact is shown in the
receipt for the earnest money.

[9.]11. Upon
acceptance of an agreement, in the case of a broker, failing to deposit any
check or cash received as earnest money before the end of the next banking day
unless otherwise provided in the purchase agreement.

[10.]12. Inducing
any party to a brokerage agreement, sale or lease to break it in order to
substitute a new brokerage agreement, agreement of sale or lease with the same
or another party if the inducement to make the substitution is offered to
secure personal gain to the licensee or owner-developer.

If discipline is imposed pursuant to this section, the costs
of the proceeding, including investigative costs and attorneys fees, may be
recovered by the board.

Sec. 15. NRS 645.633 is
hereby amended to read as follows:

645.633 The commission may take action
pursuant to NRS 645.630 against any person subject to that section who is
guilty of:

1. Willfully using any trade name,
service mark or insigne of membership in any real estate organization of which
the licensee is not a member, without the legal right to do so.

2. Violating any order of the commission,
any agreement with the division, any of the provisions of this chapter, chapter
116, 119, 119A,
119B, 645A or 645C of NRS or [of]
any regulation adopted thereunder.

3. Paying a commission, compensation or a
finders fee to any person for performing the services of a broker,
broker-salesman or salesman who has not first secured his license pursuant to
this chapter. This subsection does not apply to payments to a broker who is
licensed in his state of residence.

4. A felony, or has entered a plea of
guilty, guilty but mentally ill or nolo contendere to a charge of felony or any
crime involving fraud, deceit, misrepresentation or moral turpitude.

5. Guaranteeing, or having authorized or
permitted any person to guarantee, future profits which may result from the
resale of real property.

6. Failure to include a fixed date of
expiration in any written brokerage agreement or to leave a copy of the
brokerage agreement with the client.

7. Accepting, giving or charging any undisclosed
commission, rebate or direct profit on expenditures made for a client.

8. Gross negligence or incompetence in
performing any act for which he is required to hold a license pursuant to this
chapter, chapter 119, 119A or 119B of NRS.

9. Any other conduct which constitutes
deceitful, fraudulent or dishonest dealing.

10. Any conduct which took place before
his being licensed, which was in fact unknown to the division and which would
have been grounds for denial of a license had the division been aware of the
conduct.

11. Knowingly permitting any person whose
license has been revoked or suspended to act as a real estate broker,
broker-salesman or salesman, with or on behalf of the licensee.

Action may also be taken pursuant to NRS 645.630 against a
person subject to that section for the suspension or revocation of a real
estate brokers, broker-salesmans or salesmans license issued to him by any
other jurisdiction.

Sec. 16. 1. Notwithstanding
the provisions of sections 1 to 11, inclusive, of this act to the contrary, a
person licensed in this state on July 1, 1998, as a real estate broker, real
estate broker-salesman or real estate salesman may engage in property
management in this state until July 1, 1999, without a permit issued pursuant to
section 4 of this act by the real estate division of the department of business
and industry.

2. Such a person shall be deemed to have
satisfied the educational requirements of section 4 of this act for the initial
issuance of a permit to engage in property management if, on or before July 1,
1999, he passes a test on the principles of property management established or
adopted by the real estate commission and administered by the real estate
division of the department of business and industry.

3. For the purposes of subsection 2, the
real estate commission shall, not later than July 1, 1998, establish or adopt a
test on the principles of property management.

Sec. 17. The amendatory
provisions of this act do not apply to offenses that are committed before July
1, 1998.

Sec. 18. The provisions of
subsection 1 of NRS 354.599 do not apply to any additional expenses of a local
government that are related to the provisions of this act.

Sec. 19. 1. This
section and sections 12 to 18, inclusive, of this act become effective on
October 1, 1997.

AN ACT relating to state lands; providing
a definition of trust lands for the purpose of selling certain state lands;
authorizing payments from the state permanent school fund for certain unlocated
land warrants; repealing certain obsolete provisions; and providing other
matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 321 of NRS
is hereby amended by adding thereto the provisions set forth as sections 2, 3
and 4 of this act.

Sec. 2. As used in this chapter, unless the context otherwise
requires, the words and terms defined in sections 3 and 4 of this act have the
meanings ascribed to them in those sections.

Sec. 3. Division means the division of state lands of the state
department of conservation and natural resources.

Sec. 4. Trust lands means those lands that were granted by the
Federal Government to the State of Nevada directly or by an exchange for other
lands, and are held in trust for the state permanent school fund or another beneficiary.

Sec. 5. NRS 321.001 is
hereby amended to read as follows:

321.001 1. The division [of state lands] shall acquire and hold
in the name of the State of Nevada all lands and interests in land owned or
required by the state except:

(a) Lands or interests used or acquired for
highway purposes;

(b) Lands or interests the title to which is
vested in the board of regents of the University of Nevada;

(c) Offices outside state buildings leased by
the chief of the buildings and grounds division of the department of
administration for the use of state officers and employees; or

(d) Lands or interests used or acquired for the
legislature or its staff,

and shall administer all lands it holds which are not
assigned for administration to another state agency.

2. If additional land or an interest in
land is required for the use of any state agency except the department of
transportation or the University and Community College System of Nevada, the
agency [shall select a site approved by the state
public works board, obtain an appraisal of the land to be acquired and obtain
the approval of the legislature if required by law.]

and the
division shall select land for use by the agency. The division shall obtain the
approval of the state public works board if the land will be used for a
building pursuant to NRS 341.141. The division [of state lands shall then]shall determine the value of that land
and obtain the land or interest by negotiation or , if necessary , by exercising the
states power of eminent domain. Title must be taken in the name of the State
of Nevada.

3. The division [of
state lands] may acquire and hold land and interests in land
required for any public purpose, including the production of public revenue.
Title must be taken in the name of the State of Nevada.

Sec. 6. NRS 321.003 is
hereby amended to read as follows:

321.003 1. The state land
registrar shall assign any land or interest in land owned by the [state] State of Nevadawhich is needed for
governmental purposes to the appropriate state agency for use and
administration. Before a state agency erects a building or makes any other
permanent improvement on land assigned to it, the agency shall notify the state
land registrar, in a form prescribed by him, and shall not proceed with the
construction or improvement until the state land registrar certifies the nature
of and any encumbrances against the states title to the land, and certifies
that the boundaries of the land assigned include the site of the proposed
construction or improvement.

2. Except as otherwise provided by
specific statute, any lease or sale of land, or of any interest in land, by the
division [of state lands] must be
made upon the best terms available.

3. The state land registrar shall execute
on behalf of the state any lease, deed or other document by which any land or
interest therein owned by the state is conveyed.

4. Notwithstanding
any other provision of law, a person shall not use or acquire state land for
any purpose unless he first obtains written authorization from the state land
registrar.

5. As
used in this section, person includes a government, governmental agency and
political subdivision of a government.

Sec. 7. NRS 321.010 is
hereby amended to read as follows:

321.010 1. For
the purpose of selecting and disposing of the lands granted by the United
States to the State of Nevada, including the 16th and 36th sections, and those
selected in lieu thereof, in accordance with the terms and conditions of the
several grants of land by the United States to the State of Nevada, a state
land office is hereby created.

2. The administrator as executive head of
the division [of state lands] is
the ex officio state land registrar.

3. The state land registrar may appoint
one deputy state land registrar and such technical, clerical and operational
staff as the execution of his duties and the operation of the state land office
may require.

Sec. 8. NRS 321.040 is
hereby amended to read as follows:

321.040 1. The state land
registrar shall keep a record of all [applications
and contracts and of lands which have been or may hereafter be approved to the
state,]lands and
interests in land held by the division pursuant to NRS 321.001
and of all lands and interests in
land which have been sold by the [state.]division. These
records, together with all plats, papers and documents relating to the business
of the state land office, [shall]must be open to public inspection during office hours [without
fee therefor.]

must
be open to public inspection during office hours [without
fee therefor.]at no
charge.

2. The state land registrar shall procure
from the Bureau of Land Management one copy of each township plat of the public
surveys now approved or which may [hereafter]subsequently be
approved by the proper United States authorities, unless [the same shall]those copies have been previously obtained. [Copies of such township plats shall be made upon
material of such quality as the state land registrar may prescribe, but the
cost shall not exceed $6 for each such plat.]

Sec. 9. NRS 321.050 is
hereby amended to read as follows:

321.050 [1.] Annually,
on or before August 1, the state land registrar shall furnish each county
assessor a statement showing [:

(a) All]all lands which have been [applied for]acquired, leased or otherwise disposed of in
the [respective counties and which have not
theretofore been shown by a statement, together with the name and address of
the applicant or assignee so far as the same may be known.

(b) All forfeitures which
have occurred since the last annual statement.

2. Upon receipt of
the information provided for in subsection 1, each county assessor shall
immediately mark the same upon the township plats in his office.]county since the last annual
statement.

Sec. 10. NRS 321.055 is hereby
amended to read as follows:

321.055 [1. Upon
the sale of any land for cash or upon execution of any contract for the
purchase of land from the state, the state land registrar shall forthwith
transmit to the county assessor of the county in which such land is located a
report setting forth a description of the land, the name of purchaser, the
amount of the purchase price and a description of any improvements on such
land.

2.]Upon
the occurrence of any tax delinquency on state [land
sale contract] lands, the county assessor of the county wherein
the land is situated shall immediately notify the state land registrar of [such]that delinquency. The notice [shall]must contain a description of the land [, the name of the purchaser] and the
date and amount of delinquency.

Sec. 11. NRS 321.090 is
hereby amended to read as follows:

321.090 [1.] The
state land registrar [shall select as portions of
the several grants of land to this state all lands for which money has been
deposited under the provisions of this chapter.

2. The state land
registrar may also select any lands for the State of Nevada when such lands are
requested by the state or any state department, agency or institution, or when
it is determined by the state land registrar that the selection of such lands
will be beneficial to the state.]may select lands on behalf of the State of Nevada in
accordance with the terms of any grant authorized by the Congress of the United
States.

Sec. 12. NRS 321.110 is
hereby amended to read as follows:

321.110 1. Subject to the
provisions of [subsections 2 and 3,]subsection 2, whenever,
pursuant to the laws of the United States, any lands are offered to the State
of Nevada by the United States Government or any department thereof, the
governor [is authorized, in his discretion, to]orthe state land registrar may
accept the [same] lands and the possession
and title thereof in the name of the State of Nevada and [to] take all necessary steps to comply with any requirement and condition mentioned in the
offer.

to comply with any requirement and condition mentioned in
the offer. [The governor shall have power, among
other things, to execute agreements, to convey and reconvey lands by deeds of
relinquishment and other deeds according to and in extension of the provisions
of NRS 321.100.

2. The authority
granted the governor in this section shall not involve the acceptance of title
to more than 30,000 acres of lands that may be offered by the United States
Government, nor shall it involve or extend to the relinquishment of claims or
title to lands of value equal to the value of more than such 30,000 acres owned
by the state, including the computed value or exchange value of such claims as
the state may have or might advance against the United States Government or in
compromise or settlement of any erroneous selections, charges or credits in the
land accounts of the state and the United States.

3.]2. It is
hereby declared to be the policy of the legislature that the [governor should first] State of Nevada shall
negotiate for the acquisition of [such] those lands as an
unconditional grant by the United States Government to the State of Nevada
without any other [or further] considerations, and that if
the [governor shall be]State of Nevada is unable
to acquire [such] those lands in the manner
indicated, [then he is authorized, in his
discretion, to obtain such]the governor or the state land registrar may obtain those
lands on the best terms available.

Sec. 13. NRS 321.125 is
hereby amended to read as follows:

321.125 1. The state land
registrar may make direct sales of lands owned by the state to [public agencies]a public agency or local government of the
state if the land is:

(a) Not needed for use by the state; and

(b) Needed for a valid public use.

2. Land sold pursuant to this section
must be sold at a price equal to at least the current fair market value of the
land plus the costs of the sale, including expenses related to the appraisal of
the land.

3. As
used in this section, local government has the meaning ascribed to it in NRS
354.474.

Sec. 14. NRS 321.140 is
hereby amended to read as follows:

321.140 [1.] The
holder of any unlocated land warrant of this state, issued [prior to]before March 12, 1885, [shall
have the right to use the same in payment for lands which he may desire to
purchase from the state. Any person holding any of such warrants for 160 acres
or less, at the rate of $2.50 per acre, shall be allowed to surrender the same
to the state treasurer in full payment for double the number of acres expressed
therein of land valued at $1.25 per acre.

2. Upon the
surrender of such land warrant to the state controller by the state treasurer,
properly endorsed, the state controller shall draw his warrant upon the state
permanent school fund in favor of the state treasurer for the amount of]may present that land warrant to
the state land registrar for reimbursement from the state permanent school fund
of the amount paid for the land warrant.

321.300 1. Every person [, corporation or association, his or its heirs,
assigns or lawful successors, who has a subsisting]whoentered into a contract
with the State of Nevada for the purchase of any trust lands of the State of Nevada [or who may hereafter contract with the State of Nevada
for the purchase of any of its public lands,]before the effective date of this act,
or his heirs, assigns or lawful successors, and every patentee of
trust lands
purchased from the State of Nevada, shall, subject to the royalty [provision hereinafter reserved,] provided for in subsection 3,
be deemed and held to have the right to the exclusive possession of the lands
described in [such contract,]the contractor patent, including all
gas, coal, oil and oil shales that may exist in [such
lands; and every person corporation or association, his or its heirs, assigns
or lawful successors,] those lands.

2. Every
person who has [heretofore]
received or [shall hereafter receive or be] is entitled to receive [any patent or deed]a patent from this state granting to him [or it any such]any of those lands, or his heirs, assigns or lawful successors
shall, subject to the royalty [provision
hereinafter reserved,] provided for in subsection 3, be deemed to have the fee
simple title to the lands described in [such
patent or deed,]the
patent, including all gas, coal, oil and oil shales which may
exist therein .[; but any such contract holder or patentee]

3. Any
person described in subsection 1 or 2 shall pay to the State
of Nevada for the fund which was the original beneficiary of [such]those lands a royalty of 5 percent of the net
proceeds of all gas, coal or oil mined or extracted therefrom.

[2. Nothing
contained in]

4. The
provisions of this section [shall
be construed as impairing]do not impair any rights acquired [prior to]before July 1, 1921, [under]pursuant to existing
laws to any [such]of those lands or rights
therein.

Sec. 16. NRS 321.310 is
hereby amended to read as follows:

321.310 [1.] Except
as otherwise ordered by a [competent court having
jurisdiction or as otherwise provided in this section,] court of competent jurisdiction,the title of the state to any lands acquired by patent from the Federal
Government must be conveyed by patent.

[2. A
patent may be issued to an assignee or successor in interest of the original
applicant upon the assignee or successor in interest furnishing to the state
land registrar an executed and verified assignment in writing of the original
contract of purchase of the land signed by the original applicant or his heirs,
administrator or executor thereunto lawfully authorized, or upon the furnishing
to the state land registrar by the successor in interest of a good and
sufficient deed of conveyance of the original applicants right, title and
interest to him in and to the contract and the land mentioned therein, which
deed has theretofore been recorded in the county wherein the land is situated.

3. In case of the
death of the applicant for any state lands, upon payment and compliance with
the law by his heirs, devisees or assignees, patents for the lands must issue
in pursuance of any statute of this state in his name the same as if he were
living, without requiring any order of court. When so issued the title to the
lands designated in these patents, and the title
to lands embraced in any patent heretofore issued after the death of the
applicant, inure to and become vested in the heirs, devisees or assignees of
the deceased patentee as if the patent had issued to the deceased person during
life.]

the title to lands embraced in any
patent heretofore issued after the death of the applicant, inure to and become
vested in the heirs, devisees or assignees of the deceased patentee as if the
patent had issued to the deceased person during life.]

Sec. 17. NRS 321.331 is
hereby amended to read as follows:

321.331 Every person [, corporation or association, his, her or its] or hisheirs,
assigns or lawful successors, who has [heretofore
received since March 3, 1887, or shall hereafter receive or be entitled to
receive any]received
a patent or deed between
March 3, 1887, and the effective date of this act, from the State
of Nevada granting to him [, her or it]
any trust lands of
the State of Nevada [shall,]must, subject to the
royalty [provision] contained in
NRS 321.300, be confirmed in the fee simple title to the lands described in [such] that patent or deed, and all of the minerals
therein, including all gas, coal, oil and oil shales which may exist therein,
but any such patentee [, or his, her or its] or his successors in
interest, holding such a fee
simple title shall pay to the State of Nevada for the fund which was the
original beneficiary of [such] thoselands the
royalty provided by NRS 321.300.

Sec. 18. NRS 321.332 is
hereby amended to read as follows:

321.332 1. Every person [, corporation or association, his, her or its]or his heirs,
assigns or lawful successors referred to in NRS 321.331, who is entitled to any
trust lands that may
have been purchased by him [, her or it, or his,
her or its]or his
predecessors in interest, from the State of Nevada [subsequent
to]between March
3, 1887, and the effective date of
this act, or who has a separate estate in the minerals, including
any gas, coal, oil and oil shales existing in [such] that land, arising from a
conveyance or reservation of mineral rights by such an immediate or remote
grantee of the state, may bring an action in the district court of this state
in and for any county where [such] those lands or any part
thereof are [situate] located to determine by
declaratory judgment of [such]that court whether [or not] the State of Nevada has any
rights to any minerals therein, including any oil, gas, coal and oil shales
and, if possible, the extent thereof, and the State of Nevada hereby consents
to the bringing of any such action .
[or actions.]

2. Service of process on the State of
Nevada in any such action may be secured by serving a copy of the complaint,
together with a copy of the summons, on the attorney general of the State of
Nevada.

3. If an action is brought pursuant to
this section by the holder of a separate mineral estate, he shall give notice
of the bringing of the action, by registered or certified mail , to every record owner of
the fee in any lands which are the subject of the action, but is not required
to join any such owner as a party to the action. The notice [shall be given on or]must:

(a) Be
given within 5 days after the date of the filing of the complaint [,
shall identify];

(b) Identify
the land of the owner which is affected [, and
shall state]; and

321.333 1. If in any such
action authorized by NRS 321.332 ,
it is determined that the State of Nevada has any interest in any minerals in
any such lands, [save and] except
the royalty [interest] provided for
in NRS 321.300, [then] any such
person [, corporation or association, his, her or
its] or his
heirs, assigns or lawful successors, bringing any such action as plaintiff [in such action, shall have]has the option for 1 year [from]after the entry of final judgment in [such] that action to purchase from the State of
Nevada all of the interest of the State of Nevada in the minerals in [such lands, save and]those lands, except the
royalty [interest] authorized by
NRS 321.300, at [a price of 15 cents for each
acre of land involved in such action.]the fair market value of the royalty as determined by the
division.

2. If [such] theoption is
exercised, payment for [such]that mineral interest [shall] must be made to the state land registrar in
cash within the period of [such option,]the option and deposited in the
fund which was the original beneficiary of those lands, and the
state land registrar [is authorized and directed] shall, upon the payment
of [any such]the option price ,[to]
deliver to the purchaser a deed from the State of Nevada [to such purchaser,] conveying all of the
states interest in the minerals in the lands involved in [such action, save and]that action, except the
royalty [interest of the state]
provided for in NRS 321.300.

Sec. 20. NRS 321.335 is
hereby amended to read as follows:

321.335 1. Except as
provided in NRS 321.125, 321.450 and 321.510, after April 1, 1957, all sales of
any lands [to which the State of Nevada or any
department, agency or institution thereof has title, except the department of
transportation and agricultural associations organized pursuant to chapter 547
of NRS,]that the
division is required to hold pursuant to NRS 321.001,
including lands subject to contracts of sale that have been forfeited, are
governed by the provisions of this section.

2. Whenever the state land registrar
deems it to be in the best interests of the State of Nevada that any lands
owned by the state and not used or set apart for public purposes be sold, he
may, with the approval of the state board of examiners and the interim finance
committee, cause those lands to be sold at public auction or upon sealed bids,
for cash or pursuant to contract of sale, at a price not less than their
appraised value plus the costs of appraisal and publication of notice of sale.

3. Before offering any land for sale, the
state land registrar shall cause it to be appraised by a competent appraiser.

4. After receipt of the report of the
appraiser, the state land registrar shall cause a notice of sale to be
published once a week for 4 consecutive weeks in a newspaper of general
circulation published in the county where the land to be sold is situated, and
in such other newspapers as he deems appropriate. If there is no newspaper
published in the county where the land to be sold is situated , the notice must be so
published in [some]a newspaper published in
this state having a general circulation in the county where the land is
situated.

(c) A statement of whether the land will be sold
at public auction or upon sealed bids to the highest bidder; [and]

(d) If the sale is to be at public auction, the
time and place of sale; [or]and

(e) If the sale is to be upon sealed bids, the
place where the bids will be accepted, the first and last days on which the
bids will be accepted, and the time when and place where the bids will be
opened.

6. The state land registrar may reject
any bid or offer to purchase if he deems the bid or offer to be:

(a) Contrary to the public interest.

(b) For a lesser amount than is reasonable for
the land involved.

(c) On lands which it may be more beneficial for
the state to reserve.

(d) On lands which are requested by the State of
Nevada or any department, agency or institution thereof.

7. Upon acceptance of any bid or offer
and payment to the state land registrar in accordance with the terms of sale
specified in the notice of sale, the state land registrar shall convey title by
quitclaim [,]or cause a patent to be issued as provided in
NRS [321.310,] 321.320 and 321.330 .[or
enter into a contract of sale as provided in NRS 321.240 to 321.300, inclusive,
as appropriate. Any such contract must require that the remainder of the
purchase price be paid within 25 years from the date of the contract and that
the contract will immediately be declared forfeited if any installment of
principal or interest remains unpaid for a period of 6 months after the
installment becomes due and payable pursuant to the contract.

8. Nothing in this
section applies to or affects any pending contract or application for the
purchase of land from the State of Nevada, whether title to it is in the state
or the state is in the process of acquiring title to it under any method of
exchange or selection between the state and the United States or any department
or agency thereof.

9.]8. The
state land registrar may require any person requesting that state land be sold [under]pursuant to the provisions of this section to
deposit a sufficient amount of money to pay the costs to be incurred by the
state land registrar in acting upon the application, including the costs of publication
and the expenses of
appraisal. This deposit must be refunded whenever the person making the deposit
is not the successful bidder. The costs of acting upon the application,
including the costs
of publication and the expenses
of appraisal, must be borne by the successful bidder.

Sec. 21. NRS 321.339 is
hereby amended to read as follows:

321.339 Notwithstanding any other
provision of law, the state land registrar may withhold from sale any land to
which the state has acquired title by any means [whatsoever
or decline to select any lands upon application therefor when such] if those lands are
required for the use of any state department, agency or institution or are
specifically reserved by the state for future use or sale or whenever he deems
that the public interest so requires.

Sec. 22. NRS 321.355 is
hereby amended to read as follows:

321.355 1. Before any state
land may be leased, exchanged, sold or contracted for sale, the state land
registrar, in consultation with the
department of transportation, the advisory board on natural
resources and with counties and local governments, shall
designate any existing routes over the land which he determines to be necessary
for public access to any other land that is open to public use.

with counties and local governments, shall designate any
existing routes over the land which he determines to be necessary for public
access to any other land that is open to public use. If such a route is
designated, the land must be conveyed with a right of way and all rights of
access and abutters rights for the route reserved in the name of the State of
Nevada. Any right of way reserved pursuant to this subsection may, when
necessary as determined by the state land registrar and otherwise approved as
required by law, be used by a public utility [.] pursuant to the requirements set forth
in NRS 322.050 and 322.060.

2. After the land or interest in the land is conveyed, if the
route is determined by the state land registrar, in consultation with the
department of transportation and the advisory board on natural resources and
with counties and local governments, to be no longer necessary for public
access to other land which is open to public use, the state land registrar
shall, subject to the provisions of subsections 3 and 4, release the right,
title and interest of the state in and to the right of way to the purchaser or
lessee of the land, his assigns or successors in interest.

3. Before releasing the states interest
in the right of way, the state land registrar shall cause to be published in [some]a newspaper of general circulation in the
county where the right of way is located a notice of intent to release that
interest. The notice must be published at least 30 days before the proposed
date for the release and must contain:

(a) A description of the location of the right
of way;

(b) The date upon which the release is to be
effective; and

(c) The mailing address of the state land
registrar to which persons may send protests against the proposed release.

4. The state land registrar may, or upon
the receipt of a written protest against the proposed release shall, hold a
public hearing. The hearing must be:

(a) Held in the county in which the right of way
is located; and

(b) Advertised at least 30 days before the date
of the hearing in a newspaper of general circulation in the county where the
right of way is located.

Sec. 23. NRS 321.605 is
hereby amended to read as follows:

321.605 The intent of the legislature in
the enactment of NRS 321.605 [to 321.630,
inclusive,]and
321.610 is to provide an orderly procedure for the processing of
applications by the state, its agencies and political subdivisions for lease or
purchase of public lands pursuant to the provisions of the [Public and Recreational] Recreation and Public
Purposes Act of 1926, 44 Stat. 741, as amended, and to aid [both] the applicant and the Bureau of
Land Management by requiringthe
state land registrar to examine [into]
the propriety and correctness of [such
applications prior to their being]the applications submitted to the state land registrar
pursuant to subsections 1 and 5 of NRS 321.610 before the applications are filed
with the Bureau of Land Management.

Sec. 24. NRS 321.610 is
hereby amended to read as follows:

321.610 1. All applications to the Bureau
of Land Management by the state [, its agencies
and political subdivisions]filed on behalf of a state agency except:

to lease or purchase lands pursuant to the provisions of the
[Public and Recreational]Recreation and Public
Purposes Act of 1926, 44 Stat.
741, as amended, [shall be filed
with]must be
submitted to the state land registrar [,
who shall:

1. Examine such]for approval.

2. The
state land registrar shall:

(a) Examine
those applications and determine whether they are in proper
form, contain the required information and are accompanied by the required
fees; [and

2.](b) Determine from
the records of the Bureau of Land Management whether the lands to be leased or
purchased are subject to disposition [under such
act.]pursuant to
the act; and

(c) File
each application he approves with the Bureau of Land Management.

3. If
the state land registrar denies an application submitted pursuant to subsection
1, he shall mail a written notice of the denial to the state agency within 7
days after the application is denied. The notice must include a statement that
sets forth:

(a) The
reason the application was denied; and

(b) Any
conditions that the state agency must satisfy before the state land registrar
will approve the application.

4. If
the state agency satisfies the conditions set forth in the notice, the state
land registrar shall approve the application and file it with the Bureau of
Land Management.

5.The department of transportation, the
University and Community College System of Nevada, the legislature or a
political subdivision of the state may request the assistance of the state land
registrar in filing an application with the Bureau of Land Management to lease
or purchase lands pursuant to the provisions of the Recreation and Public
Purposes Act of 1926, 44 Stat. 741,as amended. The state land registrar shall provide the
assistancerequested,
including, but not limited to, an examination of any application submitted to
him for his review. The state land registrar shall, upon the completion of his
examination, return the application to the department of transportation, the
University and Community College System of Nevada, the legislature or the
political subdivision for filing with the Bureau of Land Management.

Sec. 25. NRS 321.655 is
hereby amended to read as follows:

321.655 As
used in NRS 321.640 to 321.770, inclusive:

1. Administrator means the executive
head of the division .[of state lands of the state department of
conservation and natural resources.]

2. Area of critical environmental
concern means any area in this state where there is or could develop
irreversible degradation of more than local significance but does not include
an area of depleting water supply which is caused by the beneficial use or
storage of water in other areas pursuant to legally owned and fully
appropriated water rights.

(a) The planning commission for the city in
which the land is entirely located; or

(b) A county or regional planning commission, if
there is one, or the board of county commissioners or Nevada Tahoe regional
planning agency, within whose jurisdiction the land is located.

4. Public lands means all lands within
the exterior boundaries of the State of Nevada except lands:

(a) To which title is held by any private person
or entity;

(b) To which title is held by the State of
Nevada, any of its local governments or the University and Community College
System of Nevada;

(c) Which are located within congressionally
authorized national parks, monuments, national forests or wildlife refuges, or
which are lands acquired by purchase consented to by the legislature;

(d) Which are controlled by the United States
Department of Defense, Department of Energy or Bureau of Reclamation; or

(e) Which are held in trust for Indian purposes
or are Indian reservations.

Sec. 26. NRS 321.700 is
hereby amended to read as follows:

321.700 In
addition to any other functions assigned to it by law, the division [of state lands of the state department of conservation
and natural resources] is hereby designated as the state land use
planning agency for the purpose of carrying out the provisions of NRS 321.640
to 321.770, inclusive, and fulfilling any land use planning requirements
arising under federal law.

Sec. 27. NRS 322.0042 is
hereby amended to read as follows:

322.0042 Commercial use means any use
conducted primarily for profit, except a use conducted by [a public utility or] a governmental or
quasi-governmental entity.

Sec. 28. NRS 323.100 is
hereby amended to read as follows:

323.100 1. The state land
registrar may, with the approval of the state board of examiners and the
interim finance committee, exchange state lands or interests in land for any other lands [of equal value.]or interests of land. The division of state lands of the state department of
conservation and natural resources shall determine the values of
the lands or interests in land which
are to be exchanged . The values must
be [established by an appraisal conducted by a
competent appraiser.]equal or, if the values are not equal, the values may be equalized by the
payment of money, if the payment is not more than 25 percent of the total value
of the lands or interests in land.

2. Upon effecting an exchange, the state
land registrar shall deliver to the transferee proper conveyances of title to
the state lands exchanged and shall require [similar]proper conveyances
of title to the state of the lands received pursuant to the exchange.

Sec. 30. The amendatory
provisions of this act do not affect any rights acquired before the effective
date of this act.

Sec. 31. This act becomes
effective upon passage and approval.

________

κ1997
Statutes of Nevada, Page 973κ

CHAPTER 285, AB 548

Assembly Bill No.
548Committee on Labor and Management

CHAPTER 285

AN ACT relating to industrial insurance;
requiring the rates for the plan for equitable apportionment among insurers of
persons who are entitled to insurance but who have not been accepted by an
insurer to be actuarially determined to ensure that the plan is
self-sustaining; eliminating the requirement that a private carrier provide
industrial insurance for the same classes of risk for which he provides
industrial insurance outside this state; and providing other matters properly
relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 686B.1771 is
hereby amended to read as follows:

686B.1771 1. No
insurer is required to issue to any particular employer a policy for industrial
insurance.

2. The commissioner shall approve a plan
submitted by the advisory organization for equitable apportionment among
insurers of those persons who in good faith are entitled to insurance but who
have not been accepted by an insurer. Every insurer shall participate in the
plan. The commissioner shall adopt regulations to carry out the plan.

3. The advisory organization shall submit
to [him]the commissioner the rates, supplementary rate
information and forms for policies for the plan at least 60 days before they
become effective. The rates submitted to the commissioner must [reflect]:

(a) Reflect
the experience of the persons insured pursuant to the plan to the extent that
those rates are actuarially appropriate.

(b) Be
actuarially determined to ensure that the plan is self-sustaining.

4. The commissioner shall disapprove any
rates for the plan which do not meet the standards of NRS 686B.050. The rates
shall be deemed to be approved unless they are disapproved by the commissioner
within 60 days after they are filed pursuant to the procedures in NRS
686B.1775.

Sec. 3. 1. This
section and section 2 of this act become effective upon passage and approval.

2. Section 1 of this act becomes
effective at 12:01 a.m. on July 1, 1999.

________

κ1997
Statutes of Nevada, Page 974κ

CHAPTER 286, AB 360

Assembly Bill No.
360Assemblyman Sandoval

CHAPTER 286

AN ACT relating to financial institutions;
revising certain provisions relating to the organization of banking
corporations and companies and thrift companies; authorizing an existing
corporation or company to organize as a banking corporation or company by
amending its articles of incorporation or organization; authorizing a banking
corporation to increase or reduce its authorized stock without the approval of
its stockholders under certain circumstances; authorizing banks to liquidate
their affairs voluntarily without the approval of the commissioner of financial
institutions under certain circumstances; providing for the appointment of a
successor trustee for a liquidated bank without the entry of an order by the
district court under certain circumstances; prohibiting certain thrift
companies from becoming authorized to engage in business in this state by obtaining
a contract for the issuance of deposits issued by a private insurer; and
providing other matters properly relating thereto.

[Approved July 3, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 657 of NRS
is hereby amended by adding thereto a new section to read as follows:

Stockholders
equity or members equity means the capital, surplus and retained earnings
of a bank.

Sec. 2. NRS 657.005 is
hereby amended to read as follows:

657.005 As
used in this Title, [except as otherwise
specifically provided or]unless the context otherwise requires, the
words and terms defined in NRS 657.016 to 657.085, inclusive, and section 1 of this act have
the meanings ascribed to them in those sections.

Sec. 3. NRS 657.016 is
hereby amended to read as follows:

657.016 Bank, commercial bank,
banking company or banking corporation [refers
to corporations]means
a corporation or limited-liability [companies,
whether]company
that is chartered by this state, another state or the United
States [, conducting]and conducts the business
of receiving money as demand deposits or otherwise [carrying]carries on a banking
or banking and trust business. The
terms do not include a thrift company engaged in business pursuant to chapter
677 of NRS.

Sec. 4. NRS 657.045 is
hereby amended to read as follows:

657.045 Insolvency
means [any] one or more of the
following:

1. When a bank cannot meet its deposit
liabilities as they become due in the regular course of business.

2. When the actual cash market value of a
banks assets is insufficient to pay its liabilities to depositors and other
creditors.

3. When a banks reserve falls under the
amount required by this Title, and it fails to make good such reserve within 30
days after being required to do so by the commissioner.

4. [Whenever]When the undivided
profits and surplus are inadequate to cover losses of the bank and [an impairment of the capital stock is created.]the stockholders or members
equity of the bank has been reduced below the requirements of law.

657.095 [All]The provisions of
chapters 78 ,[and] 86 and 92A of NRS that are not in conflict with this Title are
hereby adopted as a part of this Title.

Sec. 6. NRS 658.115 is
hereby amended to read as follows:

658.115 1. The
commissioner shall make summary orders in writing as provided in subsections 2
to 5, inclusive.

2. If a bank, a member of its board of
directors or any manager, officer, employee, member or stockholder violates the
[banks] articles of incorporation
or organization of the bank or
any law related to banking, or, in the opinion of the commissioner, is
conducting its business in an unauthorized or unsafe manner, the commissioner
shall forthwith issue an order, in writing, directing the discontinuance of the
unauthorized or unsafe practices.

3. If it appears to the commissioner that
the [capital stock or total contributions]stockholders or members equity of
any bank [have]has been reduced [in value] below the requirements of law,
or [of its]that the articles of incorporation [or organization,]of the bank have been unlawfully amended to reduce the
authorized stock of the bank in violation of NRS 661.035, he
shall forthwith issue an order directing [that]
the bank to make
good the deficiency forthwith or within a time specified in the order.

4. If it appears to the commissioner that
[either] the total reserves or
reserves on hand of any bank are below the amount required by law to be
maintained, or that a bank is not keeping its reserves on hand as required by
this Title, he shall forthwith issue an order directing [that]
the bank to make
good its reserves forthwith, or within the time specified within the order, or
that it keep its reserves on hand as required by this Title.

5. If it appears to the commissioner that
any bank to which this Title is applicable does not keep its books or accounts
in such a manner as to enable the commissioner readily to ascertain its true
condition, he shall issue an order requiring the bank, or the officers or
managers thereof, or any of them, to open and keep its books or accounts as he
may, in his discretion, determine and prescribe for the purpose of keeping
accurate and convenient records of the transactions and accounts of the bank.

Sec. 7. NRS 658.151 is
hereby amended to read as follows:

658.151 1. The
commissioner may forthwith take possession of the business and property of any
depository institution to which this Title or Title 56 of NRS applies when it
appears that the depository institution:

(a) Has violated its charter or any laws
applicable thereto.

(b) Is conducting its business in an
unauthorized or unsafe manner.

(c) Is in an unsafe or unsound condition to
transact its business.

(d) Has an impairment of its [capital stock.]stockholders or members equity.

(e) Has refused to pay its depositors in
accordance with the terms on which such deposits were received, or has refused
to pay its holders of certificates of indebtedness or investment in accordance
with the terms upon which [such]those certificates of
indebtedness or investment were sold.

(g) Has neglected or refused to comply with the
terms of a [duly issued] lawful
order of the commissioner.

(h) Has refused, upon proper demand, to submit
its records, affairs and concerns for inspection and examination of [a duly]an appointed or authorized examiner of the
commissioner.

(i) Has made a voluntary assignment of its
assets to trustees.

2. The commissioner also may forthwith
take possession of the business and property of any depository institution to
which this Title or Title 56 of NRS applies when it appears that the officers
of the depository institution have refused to be examined upon oath regarding
its affairs.

Sec. 8. NRS 659.015 is
hereby amended to read as follows:

659.015 [Any
number of persons, not fewer than three,]

1. One
or more persons who desire to form a bank and engage in the
business of establishing, maintaining and operating banks of discount and
deposit, savings, time and demand deposits, or in the business of establishing,
maintaining and operating offices of loan and deposits, or to operate a bank
doing a trust and fiduciary business, [shall]must organize as a
banking corporation or company in the manner provided in this Title.

2. An
existing corporation, including, but not limited to, a corporation licensed to engage in
business pursuant to chapter 677 of NRS, or a limited-liability company that
desires to form a bank and engage in the activities described in subsection 1
must:

(a) Dissolve
and reorganize as a banking corporation or company in the manner provided in
this Title; or

(b) Amend
its articles of incorporation or organization in such a manner that it is
organized as a banking corporation or company in the manner provided in this
Title.

Sec. 9. NRS 659.025 is
hereby amended to read as follows:

659.025 The articles of incorporation or
organization must , in addition to
the requirements prescribed in chapters 78 and 86 of NRS, set
forth [:

1. The name of the
corporation or limited-liability company. No name may be used which is already
in use by another corporation or company organized under the laws of this state
or of the United States, or so nearly similar thereto as to lead to uncertainty
or confusion.

2. The location of
its principal office in this state.

3. The nature of
its business.

4. The names and
post office addresses of subscribers for stock or initial members of the
company, and the number of shares subscribed or the amount contributed by each.
The aggregate of the subscriptions or contributions is the amount of the
capital with which the bank will commence business.

5. The period, if
any, limited for the duration of the banking corporation or company.]the nature ofthe business of the corporation or
limited-liability company.

Sec. 10. NRS 659.035 is
hereby amended to read as follows:

659.035 1. [The]If the proposed bank is not an existing corporation or
limited-liability company, the articles of incorporation or
organization [must be signed by a majority of the
persons originally organizing the bank, must be proved or acknowledged before a
person authorized under the laws of this state to
take proof or acknowledgment of deeds, and] for the proposed bank must be
delivered to the secretary of state for filing.

of this state to take proof or
acknowledgment of deeds, and]for the proposed bank must be delivered to the
secretary of state for filing.

2. If the proposed bank is an existing corporation or limited-liability
company, a certificate of amendment of the articles of incorporation or
organization must be delivered to the secretary of state for filing.

3. The
secretary of state shall forthwith transmit to the commissioner a copy of the
articles or certificate of
amendment and shall not file the articles or certificate of amendment until authorized
to do so by the commissioner.

Sec. 11. NRS 659.045 is hereby
amended to read as follows:

659.045 1. Upon receipt of a
copy of the articles of incorporation or organization or the certificate of amendment of the articles of
incorporation or organization of the proposed bank, the
commissioner shall at once examine [into]
all of the facts connected with the formation of the proposed banking
corporation or company, including its location and proposed stockholders or
members. If it appears that the bank, if formed, will be lawfully entitled to
commence the business of banking, the commissioner shall so certify to the
secretary of state, unless upon examination and investigation he finds that:

(a) The proposed bank is formed for any other
than legitimate banking business;

(b) The character, general fitness and
responsibility of the persons proposed as stockholders, directors, officers,
members or managers of the bank are not such as to command the confidence of
the community in which the bank is proposed to be located;

(c) The probable volume of business and
reasonable public demand in such community is not sufficient to assure and
maintain the solvency of the new bank and of the [then
existing] bank or banks existing in the community [;]at that time;

(d) The name of the proposed banking corporation
or company is likely to mislead the public as to its character or purpose; or

(e) The proposed name is the same as the one
already adopted or appropriated by an existing bank in this state, or so
similar thereto as to be likely to mislead the public.

2. The commissioner shall not make the
certification to the secretary of state until he has ascertained that the
establishment of the bank will meet the needs and promote the convenience of
the community to be served by the bank.

3. A nonrefundable fee of $3,000 for the
application and survey must be submitted to the commissioner [at the time]upon filing the articles [are filed]or certificate of amendment with the secretary
of state. The proposed banking corporation or company shall also pay such
additional expenses incurred in the process of investigation as the
commissioner deems necessary. All money received by the commissioner pursuant
to this section must be placed in the investigative account created by NRS
232.545.

Sec. 12. NRS 659.065 is
hereby amended to read as follows:

659.065 1. Upon receipt of
the certification from the commissioner, the secretary of state shall, if the
articles of incorporation or organization are , or the certificate of amendment of the articles of
incorporation or organization is, in accordance with law, file
the articles or the certificate of
amendment and cause [them] the articles or
certificate of amendment to be recorded in his office.

amendment
and cause [them]the articles or certificate of amendment
to be recorded in his office. The secretaryof state shall, upon the payment of the
organization fees, certify under his official seal [two
copies of the articles. One copy must forthwith be filed in the office of the
county clerk of the county where the principal office of the bank in this state
is to be located. The other]a copy of the original or amended articles. The
certified copy of the original or
amended articles must be filed in the office of the commissioner.

2. Upon completion of the requirements of
subsection 1, the banking corporation or company is legally constituted under
the name stated in the articles.

3. The articles, or a copy thereof,
certified by the secretary of state or the [county
clerk of the county in which the articles are recorded, or by the]
commissioner, under their respective seals, are admissible as evidence in all
courts and places, and are, in all judicial proceedings, prima facie evidence
of the complete organization and incorporation of the banking corporation
purporting [thereby] to have been
established [.]by the articles.

4. The articles of a bank become void if
the bank fails to complete its organization and open for business to the public
within 6 months after the date of the filing of its articles or a certificate of amendment of its
articles by the secretary of state. The commissioner may extend
this limitation for good cause.

Sec. 13. NRS 659.075 is
hereby amended to read as follows:

659.075 1. Subject
to subsection 2, the [capital stock, or
contributions, of every]initial stockholders or members equityof a bank must be fully
paid in, in cash, before it is authorized by the commissioner to commence
business. The full payment in cash must be certified to the commissioner under
oath by the president or manager [and the cashier]
of the bank.

2. Except for any commission or fee not
otherwise prohibited by this subsection, the stock sold by or contributions to
any bank in the process
of organization [, or for an increase of capital,]
must be accounted for to the bank in the full amount paid. No commission or fee
may be paid to any person, association or corporation for selling the stock of or soliciting
contributions to any bank in the process
of organization. The commissioner shall refuse such a bank the authority to
commence business if commissions or fees have been paid, or have been
contracted to be paid by the bank, or by anyone in its behalf, to any person,
association or corporation for securing subscriptions for , or selling stock in, or procuring
contributions to, the bank.

Sec. 14. NRS 659.085 is
hereby amended to read as follows:

659.085 Before
the banking corporation or company begins business, it shall file with the
commissioner:

1. A statement , under oath by the president [,]or a manager , [or the
cashier,] containing the names of all the directors, managers and
officers, with the date of their election or appointment, terms of office,
residences and post office address of each, the amount of [capital] stock of which each is the
owner in good faith and the amount of money paid in on account of the [capital] stock, or the contribution made.

the [capital]
stock, or the contribution made. Nothing may be received in payment of [capital] stock or contribution [but]except money.

2. Proof that the bank is a member of the
Federal Deposit Insurance Corporation.

Sec. 15. NRS 659.095 is
hereby amended to read as follows:

659.095 1. Upon
filing of the statement and proof by the banking corporation or company as
required by NRS 659.085, the commissioner shall examine [into]
its affairs, ascertain especially the amount of [money
paid in on account of its capital,]the initial stockholders or members equity,
the name and place of residence of each director, the amount of [capital] stock of which each is the
owner in good faith or the amount of his contribution, and whether the banking
corporation or company has complied with all the provisions of law required to
entitle it to engage in business.

2. If upon the examination the
commissioner finds that the banking corporation or company is lawfully entitled
to commence business, he shall give to it a certificate signed by the
commissioner that it has complied with all the provisions of law required
before commencing business [,] and
that it is authorized to commence business.

Sec. 16. NRS 660.025 is
hereby amended to read as follows:

660.025 1. As
used in this section ,
service center is a place where functions of a bank are performed that do not
involve the receiving of deposits, making of loans or withdrawals or [the] handling of cash.

2. Banks organized under this Title may
establish and maintain one or more service centers within or outside this state according to
their needs.

3. A service center may be established by
a bank by the vote of its board of directors. The bank shall inform the
commissioner in writing of its intention to establish a service center and the
location thereof.

4. A service center does not constitute
branch banking. No license, certificate or prior approval of the commissioner,
of the division of financial institutions or of the department of business and
industry is necessary before a service center may be established.

Sec. 17. NRS 660.035 is
hereby amended to read as follows:

660.035 1. Any
bank organized under the laws of this state [possessing
a capital and surplus]that has a stockholders or members equity of
$1,000,000 or more may file an application with the commissioner for permission
to establish, upon conditions and under such regulations as may be prescribed
by the commissioner, branches in foreign countries or dependencies or singular
possessions of the United States for the furtherance of the foreign commerce of
the United States [,] and to act,
if required to do so, as fiscal agents of the United States.

2. The application must specify:

(a) The name [,
capital and surplus]and
stockholders or members equity of the bank filing it.

(b) The powers applied for.

(c) The place or places where the banking
operations are to be carried on.

3. The commissioner may:

(a) Approve or reject [such]the application in
whole or in part if for any reason the granting of [such]the application is
deemed inexpedient.

(b) From time to time [to]
increase or decrease the number of places where [such]the banking
operations may be carried on.

4. Every bank operating foreign branches
must be required to furnish information concerning the condition of [such]those branches to the commissioner upon
demand, and the commissioner may order special examinations of such branches at
such time or times as he may deem best.

5. Each bank shall conduct the accounts
of each foreign branch independently of the accounts of other foreign branches
established by it and of its home office [,]
and shall , at the
end of each year , transfer
to its general ledger the profit or loss accrued at each branch as a separate
item.

Sec. 18. Chapter 661 of NRS
is hereby amended by adding thereto a new section to read as follows:

1. No
distribution may be made by a bank if the distribution would reduce its
stockholders or members equity below its initial stockholders or members
equity.

2. As
used in this section, distribution means a direct or indirect transfer of
money or property other than its own shares or interests or the incurrence of
indebtedness by a corporation or limited-liability company to or for the
benefit of its stockholders or members with respect to any of its shares or
interests. A distribution may be in the form of a declaration or payment of a
dividend, a purchase, redemption or other acquisition of shares or interests or
a distribution of indebtedness, or in any other form.

Sec. 19. NRS 661.015 is
hereby amended to read as follows:

661.015 No bank may be:

1. Organized [with
a less capital than $250,000, or in such greater amount as may be required by
the commissioner, and paid-up surplus of $50,000, or in]unless its initial stockholders or
members equity is $300,000 or more, or such greater amount as
may be required by the commissioner .[, and the]The full amount of the [capital and surplus]initial stockholders or members equity
of any bank must be paid in cash, exclusive of all organization expenses,
except as otherwise provided in this Title, before it may be authorized to
commence the business of banking.

2. Organized or authorized to do banking
or banking and trust business unless [it is a
member in good standing of]its deposit accounts are insured by the
Federal Deposit Insurance Corporation.

Sec. 20. NRS 661.025 is
hereby amended to read as follows:

661.025 1. The
[paid-up capital, together with the surplus,
undivided profits, capital notes, debentures and reserves for losses]stockholders or members equity
of any state bank [,] must, subject
to the limitations [of]set forth in NRS 661.015,
be at least 6 percent of the total deposit liability of the bank as [may be] determined by the commissioner.
In determining the amount of [paid-up capital,
surplus, undivided profits, capital notes, debentures and reserves for losses]stockholders or members equity
that will be required, the commissioner shall give due consideration to the
character and liquidity of the assets of the bank and to the standards
regarding [capital]equity requirements
established by other state and federal banking supervising agencies.

2. The commissioner shall, [for the purpose of determining capital]to determine the requirements
for stockholders or members
equity for any state bank, include
[capital, surplus,] undivided profits, capital notes, debentures and any
reserve for losses .

state bank, include [capital,
surplus,] undivided profits, capital notes, debentures and any
reserve for losses . [, and may include as capital 6 percent of the par
value of all unpledged United States Government bonds owned by the bank.]

3. The deposit liability for the purposes
of this section must be the average of daily deposit liabilities for the
preceding 60 calendar days.

4. [Nothing
in this section prohibits]This section does not prohibit the acceptance
of deposits by any bank while it is proceeding expeditiously, as determined by
the commissioner, to comply with the provisions of this section.

Sec. 21. NRS 661.035 is
hereby amended to read as follows:

661.035 1. [A banking corporation or company doing business under
the provisions of this Title may increase its capital as permitted by law for
other corporations or companies.

2.] A
banking corporation may, with the approval of the commissioner ,[and
by the vote of the holders of at least two-thirds of the stock of the particular
class or classes of stock entitled to vote on the proposal,]
amend its articles of incorporation to authorize an increase or reduction in its
authorized [but unissued common stock. Any such
authorized increase of stock must be free from preemptive rights.

3. The authorized
but unissued stock may be issued from time to time to its officers or employees
pursuant to a stock option or stock purchase plan adopted in accordance with
this Title.]stock.

2. The
commissioner shall not approve an amendment of the articles of incorporation
that reduces the authorized stock of the corporation unless he finds that the
security of the existing creditors of the corporation will not be impaired.

Sec. 22. NRS 661.085 is
hereby amended to read as follows:

661.085 1. If
the [capital]stockholders or members equity of any bank
has become impaired ,[and the surplus and undivided profits of that
bank are insufficient to make the impairment good,] the
commissioner shall notify the officers
and directors of the bank to require the bank to make the
impairment good within [60 days after the notice
by an assessment upon the stockholders or members of the bank.]3 months after receiving notice from the
commissioner.

2. The officers and directors of the bank
[receiving]who receive the notice shall immediately [call a special meeting of the stockholders for the
purpose of making an assessment upon its stockholders, or the managers shall
make an assessment upon the members, payable in cash sufficient to cover the
impairment of the capital. The assessment must be made unless the capital of
the bank is reduced to the extent of the impairment as provided in NRS 661.046.

3. If any
stockholder or member neglects or refuses to pay the required assessment, the
board of directors or the managers shall, to make good the deficiency, cause a
sufficient amount of the capital stock of the stockholder or interest of the
member to be sold at public auction, upon 30 days notice. The notice must be
given by posting a notice of the sale in the office of the bank and by
publishing the notice in a newspaper in the place where the bank is located, or
if there is no newspaper there, then in a newspaper circulating in the county in which the bank is located.

circulating in the county in which
the bank is located. The balance, if any, over and above the deficiency, must
be returned to the delinquent shareholder or member.

4.]require the bank to make the impairment
good.

3. If,
within 3 months after [receiving]the officers and directors of the bank
receive the notice from the commissioner, thebank fails to make [good
the deficiency in its capital,]the impairment good, the commissioner may
forthwith take possession of the property and business of the bank until its
affairs are finally liquidated as provided by law.

[5. A sale
of stock as provided in this section effects an absolute cancellation of any
outstanding certificate or certificates evidencing the stock so sold, and the
certificate is void. A new certificate must be issued by the bank to the
purchaser of any stock for which an outstanding certificate was canceled.

6. The other
members of a banking company have the same right of first refusal, and the
consequences of not exercising it are the same, as provided in NRS 661.075.]

Sec. 23. NRS 661.105 is
hereby amended to read as follows:

661.105 1. [Notwithstanding any other provision of law, any]A banking
corporation organized under the laws of this state may, with the approval of
the commissioner , [and by vote of shareholders owning a majority of the
stock of such corporation, upon not less than 10 days notice given by
registered or certified mail pursuant to action taken by its board of
directors,] issue preferred stock of one or more classes, in such
amount and with such par value as is approved by the commissioner, [and make such amendments to its articles of
incorporation as may be necessary for this purpose; but, in the case of a newly
organized banking corporation which has not yet issued common stock, the
requirements of notice to and vote of shareholders does not apply.

2. No issue of
preferred stock is valid until the par value of all stock so issued is paid in.

3.]unless such an issuance is prohibited by
the provisions of chapter 78 of NRS.

2. Any
preferred stock lawfully issued by a banking corporation organized under the
laws of this state must be included in determining whether [such]the banking corporation has complied with the
minimum [capital] requirements for stockholders equity
provided by this Title.

[4. Such
preferred stock must in no case be subject to any assessment.

5. The holders of
such preferred stock shall not be held individually responsible as such holders
for any debts, contract or engagements of such banking corporation, and must
not be held liable for assessments to restore impairments in the capital of
such corporation.

6. Preferred stock
has such voting rights and is subject to retirement in such manner and upon such
terms and conditions as may be provided in the articles of incorporation of new
banks or amendments to the articles of incorporation of existing banks.

7. No dividends
may be declared or paid on common stock until all cumulative dividends on the
preferred stock have been paid in full; and if the bank is liquidated, either
through voluntary or involuntary proceedings, and
if all depositors and creditors are paid in full, then the preferred
stockholders must be paid the full par value of their stock, plus all cumulated
dividends before any distribution to holders of common stock.]

and if all depositors and creditors are
paid in full, then the preferred stockholders must be paid the full par value
of their stock, plus all cumulated dividends before any distribution to holders
of common stock.]

Sec. 24. NRS 661.115 is
hereby amended to read as follows:

661.115 1. [The president and cashier, or the managers, of every
bank shall cause to be kept at all times in the banking room where the banks
business is transacted, a full and correct list of the names and places of
residence of its stockholders or members, and the number of shares or
percentage of interest held by each.

2.] On
the [first]fourth Monday in January of each year, a
copy of the list [,]of stockholders required to be
maintained pursuant to paragraph (c) of subsection 1 of NRS 78.105 or the list
of members required to be maintained pursuant to paragraph (a) of subsection 1
of NRS 86.241 must be verified by the oath of the president [or cashier,] or a manager [,]and must be transmitted to the commissioner
and [must be] filed in his office
for the confidential use of the commissioner.

2. The
list of members required to be maintained pursuant to paragraph (a) of
subsection 1 of NRS 86.241 must, in addition to the requirements set forth in
that section, include the percentage of each members interest in the company.

Sec. 25. NRS 661.125 is
hereby amended to read as follows:

661.125 1. As
used in this section, control means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policy of
the bank, or a change in the ownership of as much as 25 percent of the
outstanding voting stock of , or
participating members interests in , any bank.

2. If there is a change in ownership of [5]10 percent or more of the outstanding voting
stock of or members interests in any bank, the president or other chief
executive officer of the bank shall report the facts to the commissioner within
[24 hours]3 business days after obtaining knowledge of
the change.

3. If a loan or loans are made by a bank,
and the loan or loans are, or are to be, secured by 10 percent or more of the
voting stock of or members interests in a Nevada bank, the president or other
chief executive officer of the bank which makes the loan or loans shall report
that fact to the commissioner within 24 hours after obtaining knowledge of the
loan or loans, except when the borrower has been the owner of record of the
stock for 1 year or more [,] or the
stock is of a newly organized bank before its opening.

4. The reports required in subsections 2
and 3 are in addition to any reports required by any other law and must contain
whatever information is available to inform the commissioner of the effect of
the transaction upon control of the bank whose stock or members interests are
involved, and must contain, when known by the person making the report:

(a) The number of shares or members interests
involved;

(b) The identity of the sellers or transferors
and purchasers or transferees of record;

(c) The identity of the beneficial owners of the
shares or members interests involved;

(e) The total number of shares or members
interests owned by the sellers or transferors and purchasers or transferees of
record, both immediately before and after the transaction being reported;

(f) The total number of shares or members
interests owned by the beneficial owners of the shares or members interests
involved, both immediately before and after the transaction being reported;

(g) The identity of borrowers;

(h) The name of the bank issuing the stock
securing, or whose members interests secure, the loan; and

(i) The number of shares or members interests
securing the loan and the amount of the loan or loans.

5. Each bank shall ,within 24 hours after there is a change in the chief executive officer or
directors of the bank, report the change to the commissioner . [within
24 hours any changes in chief executive officers or directors, including]The bank shall include
in its report a statement of the past and current business and professional
affiliations of new chief executive officers or directors. [Any]A new chief executive officer shall furnish to
the commissioner a complete financial statement [as
may be]if
required to do so by
the commissioner.

6. An application [pursuant
to NRS 659.045] must be submitted to the commissioner by the
person who acquires stock or members interests resulting in a change of
control of the bank. The
application must be submitted on a form prescribed by the division of financial
institutions. Except as otherwise provided in subsection 8, the
commissioner shall conduct an investigation to determine whether the character,
general fitness and responsibility of the applicant is such as to command the
confidence of the community in which the bank is located.

7. The bank with which the applicant is
affiliated shall pay such a portion of the cost of the investigation as the
commissioner requires. All money received by the commissioner pursuant to this
subsection must be placed in the investigative account created by NRS 232.545.
If the commissioner denies the application, he may forbid the applicant from
participating in the business of the bank.

8. A bank may submit a written request to
the commissioner to waive an investigation pursuant to subsection 6. The commissioner
may grant a waiver if the applicant has undergone a similar investigation by a
state or federal agency in connection with the licensing of , or his employment with , a financial institution.

9. As used in this section, chief
executive officer includes a manager of a limited-liability company.

Sec. 25.5. NRS 661.145 is
hereby amended to read as follows:

661.145 1. No
person is eligible to serve as a director or manager of any bank, organized or
existing under the laws of this state, unless he is a bona fide owner of stock
of the bank or its holding company, or has a members interest in the bank. The
stock or interest owned must have a total fair market value of at least $1,000.
A determination of the value of the stock or interest must be based on its
value on the date it was purchased or on its value on the date the owner became
a director, whichever is greater.

greater. The stock or the members contribution must be
fully paid and not pledged.

2. [Except
in the case of a merger between an out-of-state bank and a Nevada bank or an
out-of-state bank that acquires a branch in Nevada pursuant to the provisions
of chapter 666 of NRS, a majority of the board of directors or managers of
every bank must be residents of the State of Nevada, and at least one of the
directors or managers must reside in the county where its principal place of
business is to be conducted.

3.] For
the purposes of this section, holding company has the meaning ascribed to it
in NRS 666.005.

Sec. 26. NRS 661.165 is
hereby amended to read as follows:

661.165 [1.] The
board of directors shall meet at least quarterly in regular meeting. At least
quarterly, a thorough examination of the books, records, funds and securities
held by the bank must be made. The examination may be dispensed with if an
annual audit is made of the books, records, funds and securities.

[2. At each
meeting of the directors, regular or special, the minutes of the previous
meeting must be read and corrected, as may be desired, and thereupon signed by
each director present.]

Sec. 27. NRS 661.195 is
hereby amended to read as follows:

661.195 Any director, manager, officer or
other person who knowingly and
intentionally participates in any violation of the laws of this
state [relative]relating to banks is
liable for all damage which the bank, its stockholders, members, depositors or
creditors sustain [in consequence of such]as a result of that
violation.

Sec. 28. NRS 661.235 is
hereby amended to read as follows:

661.235 1. As used in this
section, net profits means the remainder of all earnings from operations plus
actual recoveries on loans and investments and other assets, after deducting
from the total thereof all operating expenses, actual losses, transfers to
reserve for loan losses and all federal and state taxes.

2. [Unless
a greater dividend or distribution is authorized pursuant to NRS 661.225,]Except as otherwise provided in
subsection 3, the directors of any state bank [may, from time to time,]shall not declare a
dividend or make a
distribution of [so much of] the
net profits of the bank [as they judge expedient,
except that until the]until:

(a) The
surplus fund of [such]the bank equals its [common capital, no dividends or distributions may be
declared unless there]initial stockholders or members equity, not including its
initial surplus fund;

(b) There
has first been carried to the surplus fund 10 percent of the previous years net
profit [. No dividends may be paid or
distribution made unless the capital and surplus of the bank equal not less
than the minimum capital requirements of]; and

(c) The
bank complies with the requirements set forth in NRS 661.025.

3. Except
as otherwise provided in section 18 of this act, the directors of a state bank
that maintains the insurance of deposits required pursuant to the provisions of
the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.) may declare a
dividend or make a distribution of so much of the net profits of the bank as
they determine is expedient.

662.015 1. In
addition to the powers conferred by law upon private corporations and
limited-liability companies, a bank may:

(a) Exercise by its board of directors, managers
or authorized officers and agents, subject to law, all powers necessary to
carry on the business of banking [, by
discounting]by:

(1) Discounting
and negotiating promissory notes, drafts, bills of exchange and other evidences
of indebtedness [, by receiving deposits, by buying];

(2) Receivingdeposits;

(3) Buying
and selling exchange, coin and bullion ; and [by
loaning]

(4) Loaning
money on personal security or real and personal property. At the time of making
loans, banks may take and receive interest or discounts in advance.

(b) Adopt regulations for its own government not
inconsistent with the constitution and laws of this state.

(c) Issue, advise and confirm letters of credit
authorizing the beneficiaries to draw upon the bank or its correspondents.

(d) Receive money for transmission.

(e) Establish and become a member of a
clearinghouse association and pledge assets required for its qualification.

(f) Exercise any authority and perform all acts
that a national bank may exercise or perform, with the consent and written
approval of the commissioner. The commissioner may, by regulation, waive or
modify a requirement of this Title if the corresponding requirement for
national banks is eliminated or modified.

(g) Provide for the performance of the services
of a bank service corporation, such as data processing and bookkeeping, subject
to any regulations [which may be]
adopted by the commissioner.

(a) As is necessary for the convenient
transaction of its business, including furniture and fixtures, with its banking
offices and for future site expansion. This investment must not exceed, except as
otherwise provided in this section, 60 percent of its [capital
accounts]stockholders
or members equity, plus subordinated capital notes and
debentures. The commissioner may [, in his
discretion,] authorize any bank located in a city whose
population is more than 10,000 to invest more than 60 percent of its [capital accounts]stockholders or members equity, plus
subordinated capital notes and debentures , in its banking [houses,]offices, furniture
and fixtures.

(b) As is mortgaged to it in good faith by way
of security for loans made or money due to the bank.

(c) As is permitted by NRS 662.103.

3. This section does not prohibit any
bank from holding, developing or disposing of any real property it may acquire
through the collection of debts due it. Any real property acquired through the
collection of debts due it may not be held for [a
longer time]longer
than 10 years. It must be sold at private or public sale
within 30 days thereafter.

private or public sale within 30 days thereafter. During the
time that the bank holds the real property, the bank shall charge off the real
property on a schedule of not less than 10 percent per year, or at a greater
percentage per year as the commissioner may require.

Sec. 30. NRS 662.065 is
hereby amended to read as follows:

662.065 1. As used in this
section, private security means a marketable obligation in the form of a
bond, note or debenture which is commonly regarded as an investment security.
It does not include investments which are predominantly speculative in nature.

2. A bank may purchase a private security
for its own account when in its prudent banking judgment, which may be based in
part upon estimates which it believes to be reliable, it determines that:

(a) There is adequate evidence that the obligor
will be able to perform all that it undertakes to perform in connection with
the security, including all debt service requirements; and

(b) The security may be sold with reasonable
promptness at a price which corresponds reasonably to its fair value.

3. A bank may purchase a private security
for its own account, although its judgment with respect to the obligors
ability to perform is based predominantly upon estimates which it believes to
be reliable. Although the appraisal of the prospects of any obligor will
generally be based in part upon estimates, it is the purpose of this subsection
to permit a bank to exercise a broader range of judgment with respect to a more
restricted portion of its investment portfolio. This authority may be exercised
not only in the absence of a record of performance, but also when there are prospects
for improved performance.

4. A bank may , [consider]
as a factor in reaching its prudent banking judgment with respect to a private
security, consider a
ruling published by the commissioner on the eligibility of [such]the private security for purchase.
Consideration must be given to the possibility that circumstances on which the
ruling was based [,] may have
changed since the time of the ruling.

5. Subject to the limitations [of]set forth in NRS 662.155, the investment in
any private securities of any one obligor may at no time be more than 25
percent of the [unimpaired capital and permanent
surplus of any bank.]stockholders or members equity of the bank.

Sec. 31. NRS 662.095 is
hereby amended to read as follows:

662.095 1. To
the same extent that a bank may invest its money in obligations of the United
States, a bank may invest its money and may invest the money in its custody or
possession which is eligible for investment:

(a) In bonds or notes secured by a mortgage or
deed of trust insured or guaranteed by the Federal Housing Administrator or the
Department of Veterans Affairs;

(b) In mortgages on real property which have
been accepted for insurance by the Federal Housing Administrator or Department
of Veterans Affairs; and

(c) In obligations of national mortgage
associations or bonds, debentures, consolidated bonds or other obligations of
any Federal Home Loan Bank or Banks.

2. A bank may make such loans:

(a) Secured by real property, as the Federal
Housing Administrator or Department of Veterans Affairs has insured or has made
a commitment to insure, and may obtain such insurance.

(b) As are insured or guaranteed by the Federal
Housing Administrator, and on being approved as eligible for credit insurance
by the Department of Veterans Affairs, may make such loans as are insured or
guaranteed by the Department of Veterans Affairs.

3. Wherever by statute of this state:

(a) Collateral is required as security for the
deposit of public money;

(b) Deposits are required to be made with any
public officer or department; or

(c) An investment of [capital
or surplus,]stockholders
or members equity, or a reserve or other fund is required to be
maintained, consisting of designated securities,

bonds and notes secured by a mortgage or deed of trust
insured by the Federal Housing Administrator or Department of Veterans Affairs,
debentures issued by the Federal Housing Administrator and obligations of
national mortgage associations are eligible for [such]those purposes.

4. No law of this state prescribing the
nature, amount or form of security or requiring security upon which loans or
investments may be made, prescribing or limiting the rates of time of payment
of the interest any obligation may bear, or prescribing or limiting the period
for which loans or investments may be made, applies to loans or investments
made pursuant to this section.

Sec. 32. NRS 662.099 is
hereby amended to read as follows:

662.099 A state bank may purchase for its
own account the [capital] stock and
other securities of:

1. A development corporation organized
under the provisions of chapter 670 of NRS; [and]

2. A corporation for economic
revitalization and diversification organized under the provisions of chapter
670A of NRS, if the bank is a member of the corporation, and to the extent of
its loan limit established under NRS 670A.200,on the same terms and
under the same conditions as a national bank may purchase them [.]; and

3. Subject
to any conditions imposed by the commissioner, a development corporation, a
corporation for economic revitalization and diversification, a corporation for
community development, or a similar corporation organized in another state if
the commissioner determines that the laws pursuant to which the corporation is
organized are substantially similar to the provisions of chapter 670 or 670A of
NRS.

Sec. 33. NRS 662.103 is
hereby amended to read as follows:

662.103 1. A
bank may invest in real property for development, directly or through
partnerships, joint ventures or other indirect methods. Any such investment
must not exceed the market value or appraisal of the property as evidenced by a report
prepared within 120 days before the investment by a
member of a society approved collectively by the commissioner or by another
appraiser [so] approved individually [.]

investment by a member of a society approved collectively by
the commissioner or by another appraiser [so]
approved individually [.]by the commissioner.
Approval must be based on the independence, experience and training required of
or possessed by the appraiser.

2. Within 30 days after such an
investment is made, the bank must file with the commissioner:

(a) A certified copy of at least one report of
the appraisal of the real property in which the investment is made; and

(b) The report of a title insurance company
which contains the transfers of title which occurred during a period of at
least 3 years immediately preceding the investment and the amount of
consideration, if available, given for each transfer.

3. A bank may not invest in real property
for development, exclusive of investments allowed under paragraphs (a) and (b)
of subsection 2 of NRS 662.015 and of real property acquired through the
collection of debts due to the bank, an amount which exceeds its [capital accounts]stockholders or members equity or 10 percent
of its assets, whichever is less. The commissioner may require a statement from
the bank disclosing whether any director, officer or employee of the bank has a
direct or indirect interest in the real property involved or has had any such
interest at any time during the preceding 3 years. Ownership of stock in a
corporation which has an interest is an interest in the property of the stockholder. Failure to
make a required disclosure is unlawful.

Sec. 34. NRS 662.105 is
hereby amended to read as follows:

662.105 Subject to any
applicable regulations of the commissioner, a banking corporation may grant
options to purchase, sell or enter into agreements to sell shares of its
capital stock to its directors, officers
or employees, or [both,]any of them, for a
consideration of not less than 100 percent of the fair market value of the
shares on the date the option is granted, or, if pursuant to a stock purchase
plan, 85 percent of the fair market value of the shares on the date the
purchase price is fixed, pursuant to the terms of a plan for the purchase of
stock by officers and employees which has been adopted by the board of directors
of the bank and approved by a
majority of the holders of [at
least two-thirds of] the particular class or classes of stock [entitled to vote on the proposal]that are included in the plan
and by the commissioner. In no event may the option to purchase such shares be
for a consideration less than the par value thereof.

Sec. 35. NRS 662.115 is
hereby amended to read as follows:

662.115 A bank may issue capital
notes , collateralized debt
securities, collateralized debt certificates, or debentures,
convertible or otherwise, subject to such regulations as the commissioner may
adopt with respect thereto.

Sec. 36. NRS 662.125 is
hereby amended to read as follows:

662.125 1. [No]Except as otherwise provided in subsection 2, no
bank may make any loan or discount on the security of its own [capital] stock or members interests,
nor be the purchaser or holder of any such shares or interests, unless the [security or purchase]loan, discount,purchase or holding has been approved by
the commissioner or is necessary to prevent loss upon a debt
previously contracted in good faith.

2. A
bank may make a loan or discount on the security of its own stock or members
interests as it deems appropriate if the bank is subject to the reporting
requirements set forth in section 12, 13, 14 or 15(d) of the Securities
Exchange Act of 1934, as amended (15 U.S.C §§ 78l, 78m, 78n and 78o(d),
respectively) or 12 C.F.R. § 335.

3. Stock
or interests [so] purchased or
acquired to prevent loss upon a
debt previously contracted in good faith must , within [12 months after purchase]2 years after they are purchased,
be sold or disposed of at a public
or private sale [.], unless the commissioner authorizes the
bank to hold the stock or interests for a longer period. After
the expiration of [12 months,]2 years or the period authorized by the
commissioner, any such stock or interests not [so]sold or disposed of pursuant to this subsection must , except upon the approval of the
commissioner, be charged to profit and loss and must not be
considered as part of the assets of the bank.

[2.]4. Any bank
may sell or become the owner of any property which may come into its possession
as collateral security for any debt or obligation due it, according to the
terms of any contract depositing [such]the collateral
security . [, and if]If there is no [such
contract, then]contract,
the collateral security may be sold in the manner provided by law. Any [such] property the bank has in its possession pursuant to this subsection, other
than real property ,
must be sold within 2 years after [acquisition.]it is acquired, unless the
commissioner authorizes the bank to hold the property for a longer period.

Sec. 37. NRS 662.135 is
hereby amended to read as follows:

662.135 1. Except as
otherwise provided in this section and subject to the provisions of NRS 662.065
and 662.125, no bank may make any investment in [capital]the stock or
become a member of any other state or national bank.

2. A bank doing business under this Title
may subscribe to or purchase, upon such terms as may be agreed upon, the [capital] stock of banks organized under
the Act of Congress known as the Edge Act or the [capital]
stock of central reserve banks whose [capital]
stock exceeds $1,000,000.

3. [In
order to]To
constitute a central reserve bank as contemplated by this Title, at least 50
percent of the capital stock of [such]the bank must be
owned by other banks. The investment by any bank in the capital stock of [such]a central reserve bank or a bank organized
under the Edge Act, must at no time exceed 10 percent of the [paid-in capital and permanent surplus]stockholders or members equity
of the bank making the investment.

4. A bank shall not invest in the stocks
or ownership of other corporations, firms, partnerships or companies except as
otherwise provided in this Title, unless the investment is made to protect the
bank from loss.

5. A bank may invest in the stocks or ownership of other
corporations, firms, partnerships or companies as part of a merger,
consolidation, combination or acquisition that is authorized pursuant to the
provisions of chapter 78, 86 or 92A of NRS, regardless of whether the
investment is made to protect the bank from loss.

6. Any
stocks or ownership owned or acquired after July 1, 1971, in excess of the
limitations imposed by this section must be disposed of at public or private
sale within 12 months after the date of acquiring them, and if not so disposed of , they must be charged to profit and loss
account, and no longer carried on the books as an asset.

if not so disposed of , they must be charged to profit and loss
account, and no longer carried on the books as an asset. The limit of time in
which such stocks or ownership is disposed of or charged off the books of the
bank may be extended by the commissioner if in his judgment it is for the best
interest of the bank that an extension be granted.

[6.]7. A bank may
subscribe to, purchase or become the owner of stock in:

(a) Federal reserve banks as established by Act
of Congress approved December 23, 1913, being c. 6, 38 Stat. 251, or any
amendment thereof; or

(b) Any governmental agency , Federal Home Loan Bank or liquidating or
financial corporation created by the Congress of the United States.

[7.]8. A bank may
invest up to 50 percent of its surplus in the stock or membership of corporations
or limited-liability companies engaged in related banking fields.

Sec. 38. NRS 662.145 is
hereby amended to read as follows:

662.145 1. Subject
to the limitations [of]set forth in NRS 662.155,
the total outstanding loans of any bank to any person, company, corporation or
firm [, including in the loans to any
unincorporated company or firm the loans to the several members thereof,]
may not at any time exceed 25 percent of the [capital
and surplus]stockholders
or members equity of the bank, actually paid in. The discount of
bills of exchange drawn in good faith against actual existing values, as
collateral security, and a discount or purchase of commercial or business
paper, actually owned by the persons, must not be considered as money loaned.

2. Neither the limitation on loans by
banks contained in this section nor any other similar limitations contained in
any law of this state relating to banks or banking apply to any loan or loans
made by any bank to the extent that they are secured or covered by guarantees
or by commitments or agreements to take over or to purchase made by any Federal
Reserve Bank or by the United States or any department, bureau, board,
commission or establishment of the United States, including any corporation wholly
owned, directly or indirectly, by the United States.

3. The commissioner may establish
limitations on loans made by a bank to its directors, officers or employees and
may establish requirements for the reporting of these loans.

4. The commissioner may adopt regulations
necessary to carry out the provisions of this section.

Sec. 39. NRS 662.155 is
hereby amended to read as follows:

662.155 1. The combination
of investments in private securities provided for in subsection 5 of NRS
662.065 [,] and outstanding loans
provided for in subsection 1 of NRS 662.145, of any bank to any one obligor,
person, company, corporation or firm, including any unincorporated company or
firm and [to the several]the members thereof, [shall]must not at any time exceed 25 percent of the [unimpaired capital and permanent surplus]stockholders or members equity of
the bank.

2. The commissioner may adopt regulations
necessary to carry out the provisions of this section.

662.175 1. Any bank may
secure money deposited with a bank by the United States, the State of Nevada or
a political subdivision of this state by pledging acceptable assets of the bank
as collateral security.

2. Any bank may borrow money for
temporary purposes, not to exceed the amount of its [paid-up
capital and surplus,]stockholders or members equity, and may pledge any of its
assets as collateral security therefor.

3. With the written consent of the commissioner
, [and the state board of finance in each instance,]
a bank may borrow [to the amount of 50]an amount that is not more than
200 percent in excess of its [paid-up
capital and surplus,]stockholders or members equity, and pledge assets of the
bank as collateral security [therefor.]for the amount borrowed.
Any indebtedness contracted in excess of the amount limited in this subsection
is void in its entirety.

4. A bank may borrow money from the Federal Home Loan Bank.
Money borrowed pursuant to this subsection shall not be deemed borrowed money
for the purposes of the limitations prescribed in subsections 2 and 3. A bank
may pledge any of its assets as collateral security for money borrowed pursuant
to this subsection.

5. The
purchase of federal reserve money by a bank from another bank shall be deemed a
transfer from a sellers account in a Federal Reserve Bank to the buyers
account [therein, and such]in that bank, and the
transfer shall be considered a purchase and sale of [such
money. Any such]federal
reserve money. Such a transfer does not create an obligation on
the part of the buyer subject to NRS 662.145, or a borrowing subject to the
limitations of this section, but shall be considered a purchase and sale of [such]federal reserve money.

Sec. 41. NRS 662.205 is
hereby amended to read as follows:

662.205 1. As
used in this section:

(a) Board of Governors of the Federal Reserve
System means the Board of Governors of the Federal Reserve System created and
described in the Federal Reserve Act.

(c) Federal Reserve Bank means the Federal
Reserve Banks created and organized under authority of the Federal Reserve Act.

(d) Member bank means any national bank, state
bank or banking and trust company which has become or which becomes a member of
one of the Federal Reserve Banks created by the Federal Reserve Act.

2. Any bank organized under the laws of
this state may subscribe to the [capital]
stock and become a member of a Federal Reserve Bank.

3. Any bank organized under the laws of
this state which is, or which becomes, a member of a Federal Reserve Bank is,
by this section, vested with all powers conferred upon member banks of the
Federal Reserve Banks by the terms of the Federal Reserve Act as fully and
completely as if such powers were specifically enumerated and described in this
section, and all such powers must be exercised subject to all restrictions and
limitations imposed by the Federal Reserve Act, or by regulations of the Board
of Governors of the Federal Reserve System made pursuant thereto. The right, however, is expressly reserved to revoke or to amend the powers
conferred in this section.

however, is expressly reserved to revoke or to amend the
powers conferred in this section.

4. A compliance on the part of any such bank
with the reserve requirements of the Federal Reserve Act shall be deemed to be
a full compliance with those provisions of the laws of this state which require
banks to maintain cash balances in their vaults or with other banks, and no
such bank need carry or maintain a reserve other than such as is required under
the terms of the Federal Reserve Act.

5. Any such bank continues to be subject
to the supervision and examinations required by the laws of this state, except
that the Board of Governors of the Federal Reserve System may, if it deems
necessary, make examinations. The authorities of this state having supervision
over such bank may disclose to the Board of Governors of the Federal Reserve
System, or to examiners [duly]
appointed by it, all information in reference to the affairs of any bank which
has become, or desires to become, a member of a Federal Reserve Bank.

Sec. 42. NRS 662.215 is
hereby amended to read as follows:

662.215 1. Any bank
organized under the provisions of this Title may carry on a savings business as
prescribed in this Title.

2. Any bank conducting a savings business
may receive deposits on such terms as are authorized by its board of directors.

3. A receipt or a passbook must be issued
to each depositor in a bank for all money deposited on open account.

4. The
[receipt or passbook must contain the]
rules and regulations adopted by the bank governing [the
deposit or if the passbook does not contain those rules and regulations, they]deposits must be [printed]:

(a) Included
in the receipt or passbook issued pursuant to subsection 3;

(b) Printed
and conspicuously posted in [some]a place accessible and
visible to all persons in the business office of the bank [, and the rules and regulations must be accepted by
the depositor, and thereupon shall be deemed agreed to by him.]; or

(c) Provided
directly to the depositor.

5. Payments
from the account to the depositor must be made only [upon
his written order.]if
the depositor authorizes the payments. Banks issuing savings
deposit receipts for accounts
other than certificates of deposit or passbook accounts shall,
not less often than:

(a) Quarterly, for accounts having a balance of
$100 or more; or

(b) Annually, for accounts having a balance of
less than $100,

deliver or mail to the depositor a statement, showing the
balance on deposit in the account and each deposit made by and each payment made
to the depositor during the calendar quarter.

[4. Nothing
in this Title prohibits]

6. This
Title does not prohibit a bank from issuing time certificates
of deposit.

Sec. 43. (Deleted by
amendment.)

Sec. 44. NRS 665.133 is
hereby amended to read as follows:

665.133 1. The
records and information described in [subsection
1 of] NRS 665.130 may be disclosed to:

(a) An agency of the Federal Government or of
another state which regulates the financial institution which is the subject of
the records or information;

(b) The director of the department of business
and industry for his confidential use;

(c) The state board of finance for its
confidential use, if the report or other information is necessary for the state
board of finance to perform its duties under this Title;

(d) An entity which insures or guarantees
deposits;

(e) A public officer authorized to investigate
criminal charges in connection with the affairs of the depository institution;

(f) A person preparing a proposal for merging
with or acquiring an institution or holding company, but only after notice of
the disclosure has been given to the institution or holding company;

(g) Any person to whom the subject of the report
has authorized the disclosure;

(h) Any other person if the commissioner
determines, after notice and opportunity for hearing, that disclosure is in the
public interest and outweighs any potential harm to the depository institution
and its [shareholders,]stockholders, members,
depositors and creditors; and

(i) Any court in a proceeding initiated by the
commissioner concerning the financial institution.

2. All the reports made available
pursuant to this section remain the property of the division of financial
institutions, and no person, agency or authority to whom the reports are made
available, or any officer, director or employee thereof, may disclose any of
the reports or any information contained therein, except in published
statistical material that does not disclose the affairs of any natural person
or corporation.

Sec. 45. NRS 665.135 is
hereby amended to read as follows:

665.135 In making the examinations [as] required by this Title, the
commissioner and any appointed examiner may administer oaths to examine any
officer, director, manager, agent, employee, customer, depositor, [shareholder]stockholder or member of the bank, or any
other person [or persons,] touching
the affairs and business of the bank being examined. Any examiner may summon in
writing any officer, director, manager, agent, employee, customer, depositor, [shareholder]stockholder or member, or any other person [or persons]who is a resident of this state, to appear
before him and testify in relation to the affairs and business of [such]the bank.

Sec. 46. NRS 665.165 is
hereby amended to read as follows:

665.165 1. Every
state bank shall retain its business records for such periods as are or may be
prescribed by or in accordance with the terms of this section.

2. Each state bank shall retain permanently
the minute books of meetings of its stockholders and directors, any analogous
formal proceedings of its members or managers, its [capital]
stock ledger and [capital] stock
certificate ledger or stubs, its general ledger, its investment ledger, its copies
of bank examination reports, and all records which the commissioner
in accordance with this section requires to be retained permanently.

commissioner in accordance with this section requires to be
retained permanently.

3. All other bank records must be
retained for such periods as the commissioner may in accordance with this
section prescribe.

4. The commissioner shall, from time to
time, [issue]adopt regulations classifying all records kept
by state banks and prescribe the period for which records in each class must be
retained. The periods may be permanent or for a lesser term of years. The
commissioner shall keep such regulations current and shall review them at least
once every 3 years. In issuing and revising such regulations, the commissioner
shall consider:

(a) Actions at law and administrative
proceedings in which the production of bank records [might]may be necessary or
desirable.

(b) State and federal statutes of limitation
applicable to such actions or proceedings.

(c) The availability of information contained in
bank records from other sources.

(d) Such other matters as the commissioner [considers pertinent in order that his]deems pertinent to ensure that the regulations
will require banks to retain their records for as short a period as is
commensurate with the interests of bank customers and [shareholders]stockholders or
members and of the people of this state in having bank records available.

5. Any state bank may dispose of any
record which has been retained for the period prescribed by or in accordance
with the terms of this section for retention of records of its class, and
thereafter is under no duty to produce the record in any action or proceeding.

6. Any state bank may cause any or all
records required to be kept pursuant to this section to be reproduced by the
microphotographic process, optical disk imaging or any other equivalent
technique designed to ensure an accurate reproduction of the original. Any such
reproduction has the same effect as the original. Upon completion of such a
duplication, the original of any record may be destroyed.

7. To the extent that they are not in
contravention of any law of the United States, the provisions of this section
apply to all banks doing business in this state.

Sec. 47. Chapter 666 of NRS
is hereby amended by adding thereto a new section to read as follows:

1. A
Nevada depository institution or its holding company that acquires an
out-of-state depository institution, a Nevada depository institution that is
the resulting depository institution after merging with an out-of-state
depository institution, or a Nevada depository institution that otherwise
establishes or acquires a branch outside of this state, may, in accordance with
applicable state and federal law:

(a) Continue
to operate the out-of-state depository institution or branch;

(b) Convert
any existing main office or branch outside of this state into a branch of the
Nevada depository institution;

(c) Establish
or acquire additional branches of the Nevada depository institution in any
state where the out-of-state institution could have done so if it had not been
acquired or merged;

(d) Continue
or establish its principal office or principal place of business outside this
state notwithstanding the provisions of NRS 660.015 and 662.245; and

(e) Subject
to the approval of the commissioner, exercise any power and engage in any
activity outside of this state to the same extent as the out-of-state
depository institution could have if it had not been acquired or merged, even
if the Nevada depository institution is not authorized to exercise those powers
or engage in those activities in this state.

2. The
commissioner shall not approve the exercise of any power or the engagement in
any activity pursuant to paragraph (d) or (e) of subsection 1 if the
commissioner determines that the exercise of that power or the engagement in
that activity would be inconsistent with safe and sound banking practices.

3. Except
as otherwise provided in paragraph (d) of subsection 1, a branch outside this
state of a Nevada depository institution shall comply with, and have all rights
and powers prescribed in, the laws of this state relating to depository
institutions.

4. This
section does not affect the authority of the commissioner to examine, supervise
and regulate a Nevada depository institution operating or seeking to operate a
branch outside this state.

Sec. 48. NRS 666.003 is
hereby amended to read as follows:

666.003 Control
means the power, directly or indirectly, to:

1. Direct or exercise a controlling
influence over the management or policies of a depository institution or the
election of a majority of the directors or trustees of an institution; or

2. Vote:

(a) Twenty percent or more of any class of
voting securities of a depository institution if exercised by a natural person;
or

(b) More than [5]10 percent of any
class of voting securities of a depository institution if exercised by a person
other than a natural person.

Sec. 49. NRS 666.015 is
hereby amended to read as follows:

666.015 1. With the approval
of the commissioner, a Nevada depository institution may merge or consolidate
with, or transfer its assets and liabilities to, another Nevada depository
institution, an out-of-state depository institution or an out-of-state holding
company.

2. [Application
to]An application
filed with the commissioner for approval of the merger,
consolidation or transfer must be on a form prescribed by the commissioner and
must include:

(a) A nonrefundable fee of $3,000 for the
application. The depository institution [shall]must also pay such
additional expenses incurred in the process of investigation as the
commissioner deems necessary. All money received by the commissioner pursuant
to this section must be placed in the investigative account created by NRS
232.545.

(b) Certified copies of the [minutes of all proceedings had]resolutions adopted by the
directors and stockholders or the managers and members of the depository
institution or the stockholders of the holding company regarding the merger,
consolidation or transfer. The minutes of the proceedings [had]conducted by the stockholders or members of
each depository institution or the stockholders of each holding company and the resolutions adopted by them, if any, must set forth that
holders of at least [two-thirds] a majority of the stock or members interests
voted in the affirmative on the proposition of merger, consolidation or
transfer.

resolutions
adopted by them, if any, must set forth that holders of at least [two-thirds]a majority of the stock or members interests
voted in the affirmative on the proposition of merger, consolidation or
transfer. The [minutes]resolutions must also
contain or have attached thereto a complete copy of the [agreement
made and entered into between the depository institutions or with the holding
company, with reference to the merger, consolidation or transfer.]plan of merger.

(c) Information which the commissioner requires
to make the findings specified in subsection 7.

3. When a completed application has been
filed, the commissioner shall conduct an investigation of each depository
institution to determine:

(a) Whether the interests of the depositors,
creditors and stockholders or members of each depository institution are
protected.

(b) That the merger, consolidation or transfer
is in the public interest.

(c) That the merger, consolidation or transfer
is made for legitimate purposes.

(d) Whether each depository institution has a
good record of compliance with the Community Reinvestment Act of 1977 (12 U.S.C. §§ 2901
to 2905, inclusive).

4. The commissioners approval or
rejection of the merger, consolidation or transfer must be based upon his
investigation. The expense of the investigation must be paid by the depository
institutions.

5. Notice of the merger, consolidation or
transfer must be published once [a]each week for 4
consecutive weeks, before or after the merger, consolidation or transfer is
effective at the discretion of the commissioner, in a newspaper published in a
city, town or county in which each of the depository institutions is located,
and a certified copy of the notice must be filed with the commissioner.

6. The commissioner shall issue his
written decision within 60 days after receiving a completed application. The
commissioner may approve the application subject to any terms and conditions
which he considers necessary to protect the public interest.

7. The commissioner shall disapprove an
application if he finds that:

(a) The proposed transaction would be
detrimental to the safety and soundness of the applicant, to any institution
which is a party to the transaction or to a subsidiary or affiliate of any such
institution;

(b) The applicant [,]or its executive
officers, directors, managers, principal stockholders or members have not
established a record of sound performance, efficient management, financial
responsibility and integrity so that it would be against the interest of the
depositors, other customers, creditors, [shareholders]stockholders or
members of an institution, or the general
public to authorize the proposed transaction;

(c) The financial condition of the applicant or
any other institution which is a participant in the proposed transactions might
jeopardize the financial stability of the applicant or other institution, or
prejudice the interests of depositors or other customers of the applicant or
other institutions;

(d) The consummation of the proposed transaction
will tend to lessen competition substantially, unless [he]the commissioner
finds that the anticompetitive effects of the proposed transaction are clearly
outweighed by the benefit of accommodating the
convenience and needs of the relevant market to be served; or

the benefit of accommodating the convenience and needs of
the relevant market to be served; or

(e) The applicant has not established a record
of meeting the needs for credit of the communities which it or its subsidiary
depository institution serves.

8. [In any]If a merger,
consolidation or transfer [, all rights of
creditors and all liens upon any property of the constituent depository
institutions must be preserved unimpaired, limited in lien to the property
affected by those liens immediately before the time of the merger,
consolidation or transfer. All debts, liabilities and duties of the respective
constituent depository institutions must thenceforth attach to the surviving,
consolidated or transferee depository institution and may be enforced against
it to the same extent as if the debts, liabilities and duties had been incurred
or contracted by it.

9. In the case of
a merger, consolidation or transfer pursuant to the provisions of this section,
if any stockholder or member of any constituent depository institution votes
against the agreement, objects to the agreement in writing at or before the
taking of the vote thereon, and, within 20 days after the date on which the
agreement is filed as provided in this section, demands in writing from the
surviving or consolidated depository institution payment for his shares or interest,
the surviving, consolidated or transferee depository institution shall, within
30 days thereafter, pay to the stockholder or member the fair cash value of his
shares or interest as of the day before the vote on the agreement of merger,
consolidation or transfer was taken, exclusive of any element of value arising
from the expectation or accomplishment of the merger, consolidation or
transfer.

10.]is approved pursuant to this section,
the property and liabilities of the constituent depository institutions must be
treated in the manner prescribed in NRS 92A.250.

9. A
Nevada depository institution authorized pursuant to this section to merge or
consolidate with, or transfer its assets and liabilities to, an out-of-state
depository institution or an out-of-state holding company shall comply with the
laws of all states in which it is authorized to operate.

Sec. 50. NRS 666.035 is
hereby amended to read as follows:

666.035 1. A state bank may,
with the approval of the commissioner, consolidate, convert into or merge with
a national bank upon the vote of the holders of not less than two-thirds of each class of
voting stock of, or of the members interests in, the state bank.

2. The commissioner shall not approve any
consolidation, conversion or merger under this section which would:

(a) Result in a monopoly or which would further
any attempt to monopolize the business of banking in this state; or

(b) Substantially lessen competition or be in
restraint of trade, unless the commissioner finds that the anticompetitive
effects of the proposed transaction are clearly outweighed by the probable
success of the transaction in meeting the needs of the community to be served.

In every case, the commissioner shall consider the financial
and managerial resources and the future prospects of the company or companies
and the banks concerned, and the convenience and the
needs of the community to be served.

banks concerned, and the convenience and the needs of the
community to be served.

3. Except as otherwise provided in
subsection 5, the rights and liabilities of a state bank which consolidates,
converts into or merges with a national bank, and the rights and liabilities of
[its]the stockholders or members [,]of the state bank, are the same as the rights
and liabilities prescribed by the law of the United States for national banks
and their stockholders or members at the time of the consolidation, conversion
or merger.

4. Upon consolidation, conversion or
merger, the resulting national bank becomes the same business as each
consolidating, converting or merging bank, with all the property rights, power
and duties of each consolidating, converting or merging bank, except as
affected by the law of the United States and by the charter and bylaws of the
resulting bank. Any reference to a consolidating, converting or merging bank in
any writing, whether executed or which takes effect before or after the
consolidation, conversion or merger, is applicable to the resulting bank if not
inconsistent with the other provisions of that writing.

5. The holders of shares of the stock of,
or members interests in, a state bank which were voted against a consolidation
or merger into a national bank are entitled to receive their value in cash, if
and when the consolidation or merger becomes effective, upon written demand
made to the resulting national bank at any time within 30 days after the
effective date of the consolidation or merger, accompanied by the surrender of
any stock certificate or certificates. The value of the shares or interests
must be determined, as of the date of the meeting of the stockholders or members approving the
consolidation or merger, by three appraisers [,
one] to be selected as
follows:

(a) One
by the owners of two-thirds of the dissenting shares or interests
involved

[, one];

(b) One
by the board of directors of the resulting national bank [, and the third by the two so chosen.]; and

(c) One
by the appraisers chosen pursuant to paragraphs (a) and (b).

The valuation agreed upon by any two appraisers governs. If
the appraisal is not completed within 90 days after the consolidation or merger
becomes effective, the Comptroller of the Currency shall cause an appraisal to
be made.

6. The amount fixed as the value of the
shares of stock of, or members interests in, the consolidating or merging bank
at the time of the meeting of the stockholders or members approving the consolidation or
merger, and the amount fixed by the appraisal as provided by subsection 5,
where the fixed value is not accepted, constitute a debt of the resulting
national bank.

7. Upon the completion of the
consolidation, conversion or merger, the license to operate as a state bank
automatically terminates.

Sec. 51. NRS 666.075 is
hereby amended to read as follows:

666.075 1. There
is a rebuttable presumption that a company which directly or indirectly owns,
controls or has the power to vote less than [5] 10 percent of the voting stock of, or members interests in, a
bank does not control the bank.

10
percent of the voting stock of, or members interests in, a bank does not
control the bank.

2. An estate, trust, guardianship or
conservatorship is not by virtue of its ownership or control of stock of, or
members interests in, a bank, a bank holding company unless it is:

(a) A business trust; or

(b) A voting trust which by its terms or by law does
not expire within 10 years after the date of its establishment.

3. A company is not a bank holding
company by virtue of its ownership or control of stock or a members interest
which:

(a) Was acquired in the ordinary course of
securing or collecting a debt which the company previously contracted in good
faith; and

(b) Is held only as long as is necessary to sell
the stock on a reasonable basis.

Sec. 52. NRS 666.315 is
hereby amended to read as follows:

666.315 1. [Application to]An application filed with the commissioner for
approval must be on a form prescribed by the commissioner and must include:

(a) A nonrefundable fee of $3,000 for the
application. The depository institution or holding company [shall]must also pay such additional expenses
incurred in the process of investigation as the commissioner deems necessary.
All money received by the commissioner pursuant to this section must be placed
in the investigative account created by NRS 232.545.

(b) Information which the commissioner requires
to make the findings specified in subsection 4.

(c) Unless the applicant is a resident of
Nevada, a corporation organized in this state or a foreign corporation admitted
to do business in this state, a written consent to service of process on a resident
of this state in any action arising out of the applicants activities in this
state.

2. In reviewing the application, the
commissioner shall consider the applicants record of compliance with the
Community Reinvestment Act of 1977 (12 U.S.C. §§ 2901 to 2905, inclusive) and
whether the proposed transaction will meet the needs of those counties whose
populations are less than 100,000 and whose residents are not being adequately
served by existing financial institutions.

3. The commissioner shall issue his
written decision within 60 days after receiving a completed application. The
commissioner may approve the application subject to any terms and conditions
which he considers necessary to protect the public interest.

4. The commissioner shall disapprove an
application if he finds:

(a) That the proposed transaction would be
detrimental to the safety and soundness of the applicant, to any institution
which is a party to the transaction, or to a subsidiary or affiliate of that
institution;

(b) The applicant [,]or its executive
officers, directors or principal stockholders have not established a record of
sound performance, efficient management, financial responsibility and integrity
so that it would be against the interest of the depositors, other customers,
creditors or [shareholders]stockholders of an
institution, or the public to authorize the proposed transaction;

(c) The financial condition of the applicant or
any other institution which is a participant in the proposed transaction might
jeopardize the financial stability of the applicant or other institution, or
prejudice the interests of depositors or other customers of the applicant or
other institutions;

(d) The consummation of the proposed transaction
will tend to lessen competition substantially, unless the commissioner finds
that the anticompetitive effects of the proposed transaction are clearly outweighed
by the benefit of meeting the convenience and needs of the relevant market to
be served; or

(e) The applicant has not established a record
of meeting the needs for credit of the communities which it or its subsidiary
depository institution serves.

Sec. 53. NRS 666.375 is
hereby amended to read as follows:

666.375 The
commissioner may not authorize or require any transaction pursuant to NRS
666.355 involving an out-of-state depository institution or an out-of-state
holding company, unless he finds that:

1. The acquiring or merging depository
institution or holding company has demonstrated an acceptable record of meeting
the needs for credit of the communities which it serves; and

2. The acquiring or merging depository
institution or holding company has a record of sound performance, adequate [capital,]stockholders or members equity, financial
capacity and efficient management so the acquisition or merger will not
jeopardize the financial stability of the acquired or merged depository
institution and will not be detrimental to the interests of depositors,
creditors or other customers of the depository institution, or to the public.

Sec. 54. NRS 666.400 is
hereby amended to read as follows:

666.400 1. Subject to the
provisions of NRS 666.410, 666.415 and 666.420, and after approval of the
commissioner pursuant to NRS 666.315, an out-of-state depository institution or
its holding company may acquire control of, acquire all or substantially all of
the assets of, or merge with, a Nevada depository institution or its holding
company.

2. An out-of-state depository institution
or holding company that acquires a Nevada depository institution, or an
out-of-state depository institution that is the resulting depository
institution after merging with a Nevada depository institution, or an
out-of-state depository institution that otherwise establishes or acquires a
branch in Nevada, may , [do any of the following] in accordance
with applicable state and federal law:

(a) Continue to operate the Nevada depository
institution or branch;

(b) Convert any existing main office or branch
in Nevada into a branch of the out-of-state depository institution;

(c) Establish or acquire additional branches of
the out-of-state depository institution in any state where the Nevada
depository institution could have done so had it not been acquired or merged;
and

(d) Exercise any power and engage in any
activity in this state to the same extent as a depository institution of the
same [class]type whose home state is Nevada [.], even if the out-of-state depository institution is not
authorized to exercise those powers or engage in those activities in the
out-of-state depository institutions home state.

3. A branch in this state of an
out-of-state depository institution shall comply with [the
law]:

(a) If
the branch is not a federally chartered institution, the applicable laws
relating to depository institutions of the institutions home
state,including, without
limitation, provisions relating to the names of depository institutions;
or [comply with federal law in the case of]

(b) If
the institution is a federally chartered institution [.], the provisions of federal law.

4. If
the laws of this state as a host state conflict with the laws of another state
as a home state, the laws of the home state prevail , except that:

(a) The commissioner may, by regulation, order
that Nevada law prevail over that of the home state if the application of
Nevada law is necessary to preserve the safe and sound operation of the branch
or otherwise protect the residents of this state; and

(b) The laws of this state regarding protection
of customers, fair lending and intrastate branching apply to a branch in this
state of an out-of-state depository institution to the same extent as those
laws apply to a branch in this state of a depository institution chartered by
this state.

[4.]5. This
section does not affect the authority of the commissioner to examine, supervise
and regulate an out-of-state depository institution operating or seeking to
operate a branch in this state or to take any action or issue any order with
regard to that branch pursuant to NRS 666.325.

Sec. 55. NRS 666.405 is
hereby amended to read as follows:

666.405 1. Except as
otherwise provided in this section, an out-of-state depository institution
without a branch in Nevada, or an out-of-state holding company without a
depository institution in Nevada, may acquire a Nevada depository institution
and convert the institution to a branch of the out-of-state depository
institution or depository institution of the out-of-state holding company. If
the Nevada depository institution is chartered after September 28, 1995, the
Nevada depository institution may be so acquired only if it has been in
existence for at least 5 years.

2. For
the purposes of [this subsection, a]subsection 1:

(a) A
depository institution chartered solely for the purpose of acquiring another
depository institution [is considered]shall be deemed to
have been in existence for the same period as the depository institution to be
acquired, [so]as long as [it]the acquiring depository
institution does not open for business at any time before the
acquisition.

[2.](b) A bank that was originally
chartered as a corporation or limited-liability company other than a depository
institution shall be deemed to have been in existence for the period since a
certificate of amendment of its articles of incorporation or organization was
filed pursuant to NRS 659.015 to reorganize the corporation or limited-liability
company as a bank.

(c) A
bank that was originally chartered as a Nevada depository institution other
than a bank shall be deemed to have been in existence for the period since the
original articles of incorporation or organization of the depository
institution were filed with the secretary of state.

(d) If
a Nevada depository institution becomes the successor in interest to the
business of an out-of-state depository institution without a branch bank in
this state that previously acquired a Nevada depository institution or to an
out-of-state holding company without a branch bank in this state that
previously acquired a Nevada depository institution, the commissioner shall
include the period of existence of the original Nevada depository institution
when determining the period of existence of the successor Nevada depository
institution.

3. If
the commissioner considers it necessary to protect depositors, creditors and
other customers of a failing depository institution or a failing holding
company which controls a depository institution, he may authorize the
acquisition of the institution or company by, or its merger with, another
institution or company regardless of the duration of existence of the failing
depository institution or failing holding company.

[3.]4. The
restriction set forth in
subsection 1 does not apply to an acquisition of, or merger between, affiliated
depository institutions.

Sec. 56. NRS 666A.150 is
hereby amended to read as follows:

666A.150 1. Except
as otherwise provided in this chapter or in regulations adopted by the
commissioner, a foreign bank operating at a state branch or agency has the same
rights, privileges and powers as a Nevada bank at the same location, including
the eligibility to exercise fiduciary powers, and is subject to the same
duties, restrictions, penalties, liabilities, conditions and limitations that
would apply under the laws of this state to a Nevada bank doing business at the
same location, but:

(a) A state branch may not accept [,] from citizens or residents of the
United States [,] deposits other
than credit balances that are incidental to or arise out of its exercise of
other lawful banking powers, but it may accept deposits from persons who are [neither citizens nor residents]not citizens or residents
of the United States;

(b) A state agency may not accept any deposits
from citizens or residents of the United States other than credit balances that
are incidental to or arise out of its exercise of other lawful banking powers,
but it may accept deposits from persons who are [neither
citizens nor residents]not citizens or residents of the United
States; and

(c) A state branch or agency is not required to
maintain federal deposit insurance and the commissioner may, by regulation or
order, exclude or exempt uninsured state branches or agencies from, or
otherwise modify the applicability to uninsured state branches or agencies of,
any law or regulation of this state that is generally applicable to insured
Nevada banks, or that would otherwise be applicable to an insured Nevada bank
doing business at the same location, taking into account applicable limitations
on the privileges of state branches and agencies and on their power to take
retail deposits.

2. Any limitation or restriction based on
the [capital stock and surplus]stockholders or members equity
of a Nevada bank shall be deemed to refer, as applied to a state branch or
agency, to the dollar equivalent of the [capital
stock and surplus]stockholders
or members equity of the foreign bank, and if the foreign bank
has more than one state branch or agency in this state,
the business transacted by all the state branches and agencies must be
aggregated in determining compliance with the limitation.

this state, the business transacted by all the state
branches and agencies must be aggregated in determining compliance with the
limitation.

3. The commissioner may adopt such
additional, or modify the applicability of any existing, standards, conditions
or requirements, by regulation, as he deems necessary to ensure the safety and
soundness and the protection of creditors of the operations of branches and
agencies of foreign banks in this state.

Sec. 57. NRS 667.015 is
hereby amended to read as follows:

667.015 1. [A]Except as otherwise provided in this section, a
bank may go into voluntary liquidation [and be
closed, and may surrender its charter and franchise as a corporation of this
state by the affirmative votes of its stockholders owning two-thirds of its
stock, or of its members holding two-thirds of the members interests. The vote
must be taken at a meeting of the stockholders called by resolution of the
board of directors, or at a meeting of the members called by the managers.
Written notice of the meeting, which notice must state the purpose of the
meeting, must be mailed to each stockholder or member, or in case of his death,
to his legal representative or heirs at law, addressed to his last known
residence 10 days before the date of the meeting.]pursuant to the provisions of NRS 78.580
or 86.491.

2. If the voluntary liquidation of the bank results from a vote or
agreement of the stockholders or members [decide
to liquidate]of
the bank, a certified copy of all proceedings of the meeting at which that
action is taken, verified by the oath of the president or a manager , [and
the cashier,] must be transmitted to the commissioner for his
approval. If the commissioner approves the liquidation, he shall issue to the
bank, under his seal, a permit for that purpose. No permit may be issued by the
commissioner until he is satisfied that provision has been made by the bank to
satisfy and pay off all depositors and all creditors of the bank. If he is not
satisfied, the commissioner shall not issue a permit, but he may take
possession of the bank, its assets and business, and liquidate the bank in the
manner provided by this chapter.

3. When the commissioner approves the
voluntary liquidation of a bank [,]pursuant to subsection 2,
the directors or managers of the bank shall cause to be published , in a newspaper in the
city, town or county in which the bank is located, a notice that the bank is
closing its affairs and going into liquidation, and that its depositors and
creditors are to present their claims for payment.

4. When any bank is in the process of
voluntary liquidation, it is subject to examination by the commissioner, and the
bank shall furnish such reports, from time to time, as may be called for by the
commissioner.

5. All unclaimed deposits and dividends
remaining in the hands of the bank are subject to the provisions of this
chapter.

6. Any bank that is in the process of voluntary liquidation may
sell and transfer to any other state or national bank all or any portion of its assets of every kind
upon such terms as may be agreed upon and approved by the commissioner and by [two-thirds]a majority vote of the banks board of
directors or of its managers. A certified copy of the minutes of any meeting at
which that action is taken, under the oath of the president or a manager , [and
the cashier, together with] and a copy of the contract of sale and transfer [,]
must be filed with the commissioner.

[and the cashier, together
with]and
a copy of the contract of sale and transfer [,]
must be filed with the commissioner.

7. If a voluntary liquidation or the sale
and transfer of the assets of any bank is approved by the commissioner, a
certified copy of that approval under seal of the commissioner, filed in the
office of the secretary of state, authorizes the cancellation of the articles
of incorporation or organization of the bank, subject to its continued
existence, as provided by law.

Sec. 58. NRS 667.095 is
hereby amended to read as follows:

667.095 All books, papers and records of
a bank which has been finally liquidated must be deposited by the receiver in
the office of the [county clerk of the county in
which the office of the bank is located, or in such other place as in his
judgment will provide for the proper safekeeping and protection of those books,
papers and records. The books, papers and records must be held subject to the
orders of the commissioner and the county clerk of the county in which the bank
was located.]commissioner.

Sec. 59. NRS 667.105 is
hereby amended to read as follows:

667.105 1. [Subject to the provisions of subsection 3, after the
expiration of 10 years from the date of filing in the office of the county
clerk of a final order approving the liquidation of any insolvent bank and the
delivery to the county clerk or into his custody of the records of that bank,
the records may be destroyed by the county clerk by burning them in the
presence of the county recorder and the sheriff of the county, who shall join
with the county clerk in the execution of a certificate as to the destruction
of the records. The certificate must be filed by the county clerk in the court
records of the liquidation of the insolvent bank.

2. Subject to the
provisions of subsection]Except as otherwise provided in subsections 2 and 3,
after the expiration of 10 years from the filing by the commissioner of a final
report of liquidation of any insolvent bank, the commissioner, with the consent
of the state board of finance, may destroy [, by
burning,] the records of any insolvent bank held in the office of
the commissioner in connection with the liquidation of the bank . [;
but if]

2. If
there are any unpaid dividends of the insolvent bank , the commissioner shall preserve the deposit
ledger or other evidence of indebtedness of the bank which refers to the unpaid
dividends until the dividends have been paid.

3. [Neither
the county clerk of any county nor the] The commissioner may not destroy any of the formal records of
liquidation [, nor may the commissioner destroy]or any of the
records made in his office with reference to the liquidation of any insolvent
bank.

Sec. 60. NRS 667.115 is
hereby amended to read as follows:

667.115 [When]

1. Except
as otherwise provided in subsection 2, if any bank created
under the laws of this state [, which]
has been or is appointed trustee in any indenture, deed of trust or other
instrument of like character, executed to secure the payment of any bonds,
notes or other evidences of indebtedness, is taken over for liquidation by the
commissioner, by the Federal Deposit Insurance Corporation or by any other
legally constituted authority, the powers and duties of the bank as trustee
cease upon the entry of an order of the district court
appointing a successor trustee pursuant to a petition as provided for in NRS
667.125 to 667.185, inclusive.

the district court appointing a successor trustee pursuant
to a petition as provided for in NRS 667.125 to 667.185, inclusive.

2. If
an indenture, deed of trust or other instrument of like character that appoints
a bank as trustee pursuant to subsection 1 includes a provision which provides
for the appointment of a successor trustee if the bank is taken over for
liquidation, the powers and duties of the bank as trustee cease upon being
taken over by the commissioner, the Federal Deposit Insurance Corporation or
any other legally constituted authority and the successor trustee named, or
whose selection is provided for, in the instrument immediately assumes the
duties as trustee without appointment by the district court pursuant to NRS
667.125 to 667.185, inclusive.

Sec. 61. NRS 667.125 is
hereby amended to read as follows:

667.125 In all cases to which subsection 1 of NRS
667.115 is applicable, the district court for the county in which such
indenture, deed of trust or other instrument of like character is recorded
shall, upon the verified petition of any person interested in any such trust,
either as trustee, beneficiary or otherwise, which interest [shall]must be set out in the petition, issue its
order directing service on all interested parties, [either]
personally or by the publication in [some]a newspaper
published in the county, or in some adjoining county if no newspaper is
published in the county where [such]the application is
made, of a notice directed to all persons concerned, commanding and requiring
all persons having any interest in [such]the trust, to appear
in court on a day designated in the order and notice, not less than 30 days [from]after the date of the order and notice, to
show cause why a new trustee should not be appointed.

Sec. 62. NRS 667.225 is
hereby amended to read as follows:

667.225 1. When
any bank is authorized to dissolve [,]
and has taken the necessary steps to effect dissolution in accordance with the
laws of this state or the laws of the United States, but before actual
dissolution, a majority of the directors or managers of the national or state
bank, upon authority in writing of the owners of two-thirds of its [capital] stock or two-thirds of the
members interests and with the approval of the commissioner, may execute
articles of incorporation or organization as provided in this Title for the
organization of a new bank. The articles must further set forth the authority
derived from the stockholders or members of the national or state bank.

2. Upon the filing of articles of
incorporation or organization in the same manner as provided for the
organization of new banks, the reorganized bank is a bank under the laws of
this state. Upon reorganization, all assets, real and personal, of the dissolved
national or state bank, by operation of law, vest in and become the property of
the reorganized state bank, subject to all liabilities of the national or state
bank existing before the reorganization.

Sec. 63. NRS 668.075 is
hereby amended to read as follows;

668.075 A
bank or an officer or manager of a bank shall not advertise in any manner or
publish any statement of the [capital]
stock authorized or subscribed, unless the amount of [capital]
stock actually paid up is advertised or published [therewith.]with the advertisement or
statement.

669.100 No
trust company may be organized or operated with a [capital]stockholders equity
of less than [$250,000,]$300,000, or in such
greater amount as may be required by the commissioner .[, and paid-up
surplus of $50,000, or in such greater amount as may be required by the
commissioner.] The full amount of the [capital
and surplus]initial
stockholders equity must be paid in cash, exclusive of all
organization expenses, before the trust company is authorized to commence
business.

Sec. 65. NRS 669.120 is
hereby amended to read as follows:

669.120 1. The
articles of incorporation must contain:

(a) The corporate name adopted by the
corporation, which must be such as to distinguish it from any other trust
company formed or incorporated in this state, or engaged in the trust business
in this state.

(b) The place where its business is to be
conducted.

(c) The purpose for which it is formed.

(d) The amount of its [capital]
stock, which must be divided into shares of the par value of not less than [$25 each, except that upon the written approval of the
commissioner the capital stock may be divided into shares of the par value of
not less than] $1 each. [The amount
of capital stock must not be less than $250,000, and must be assessable.

(e) The amount of its
original paid-in surplus, which must not be less than 20 percent of its capital
stock.

(f)](e) The name and place
of residence of, and the number of shares subscribed by, each stockholder.

[(g)](f) The number of
directors, which must not be less than five, and the names of the stockholders
selected to act as the first board of directors, each of whom must be a bona
fide subscriber for at least $1,000 of the stock of the bank, fully paid and
not hypothecated.

[(h)](g) The location of all
branch offices as approved by the commissioner.

[(i)](h) Such other matters,
not inconsistent with law, as the incorporators [may
deem proper.]deem
appropriate.

2. The articles of incorporation may also
provide for [the]:

(a) The
issuance and sale of preferred stock in such amount as is fixed by the articles
or by amendments thereto [, and the];

(b) The
amount and number of shares [thereof, and the]of preferred stock; and

(c) The
terms and conditions [thereof]of the issuance and sale, which must
not be inconsistent
with the provisions of this chapter.

Sec. 66. NRS 669.130 is
hereby amended to read as follows:

669.130 1. The
secretary of state shall issue a certificate in the form provided by law for
other corporations, and the existence of the trust company as a corporation [dates from]begins upon the issuance of the certificate by
the secretary of state, from which time it has and may exercise the powers
conferred by law upon corporations generally, except as those powers are limited or modified by this
chapter.

2. The trust company shall not transact [no] business, except the election of
officers [,] and the taking and
approving of their official bonds, [and]
the receipt of payments on account of the subscriptions of the [capital stock,] stock and
such other business as is incidental to its organization, until it is
authorized by the commissioner to commence the trust company business as
provided in this chapter.

stock,]stock and such other
business as is incidental to its organization, until it is authorized by the
commissioner to commence the trust company business as provided in this
chapter.

Sec. 67. NRS 669.160 is
hereby amended to read as follows:

669.160 1. Within
60 days [following the filing of]after the application for
a license is filed,
the commissioner shall investigate the facts of the application and the other
requirements of this chapter to determine:

(a) That the persons who will serve as directors
or officers are qualified by character and experience.

(b) That the financial status of the
stockholders, directors and officers is consistent with their responsibilities
and duties.

(c) That the name of the proposed company is not
deceptively similar to [that]the name of another trust
company licensed in this state or
is not otherwise
misleading.

(d) That the [capital
and surplus are]initial
stockholders equity is not less than the required minimum.

(e) The need for trust facilities or additional
trust facilities in the community where the proposed trust company is to be
located.

(f) Such other matters concerning the proposed
trust company in relation to its location as the commissioner may deem
relevant.

2. Within 90 days after the application
is filed, the commissioner shall conduct a public hearing to consider the
application. At least 30 days before the hearing, the commissioner shall give
written notice of the hearing to all persons doing a trust business in the
community in which the proposed trust company is to be located and to such
other persons, institutions or organizations as he [may
see fit.]deems
appropriate.

Sec. 68. NRS 669.190 is
hereby amended to read as follows:

669.190 1. The
initial fee to be paid for a trust company license must be in proportion to the
[authorized capitalization]initial stockholders equity
of the trust company as follows:

(a) A trust company [having
a capitalization of $250,000 and up to and including $500,000 shall]with an initial stockholders
equity of not less than $300,000 but not more than$500,000 must pay a
license fee of $500.

(b) A trust company [having
a capitalization of]with
an initial stockholders equity of more than $500,000 [and up to and including $1,000,000 shall]but not more than $1,000,000 must
pay a license fee of $750.

(c) A trust company [having
a capitalization]with
an initial stockholders equity of more than $1,000,000 [shall]must pay a license fee of $1,000.

2. In addition , every trust company [shall]must pay an initial
license fee of $100 for each branch office that [may
be]is
authorized by the commissioner.

3. Thereafter, every trust company [shall]must pay annually on or before April 1 of each
year a license fee which must be in proportion to its [authorized
or existing capitalization (capital plus paid-in surplus plus undivided
profits), whichever is higher,]existing stockholders equity as follows:

(a) A trust company [having
a capitalization of $250,000 and up to and including $500,000 shall]with an existing stockholders
equity of not less than $300,000 but not more than $500,000 must
pay a license fee of $500.

(b) A trust company [having
a capitalization]with
an existing stockholders equity of more than $500,000 [and up to and including $1,000,000 shall]but not more than$1,000,000 must pay a
license fee of $750.

(c) A trust company [having
a capitalization]with
an existing stockholders equity of more than $1,000,000 [shall]must pay a license fee of $1,000.

4. All money collected under the
provisions of this section must be paid into the state general fund , and the state treasurer
shall issue a receipt therefor.

Sec. 69. NRS 669.220 is hereby
amended to read as follows:

669.220 1. Every
trust company:

(a) Shall keep all trust funds and investments
separate from the assets of the company, and all investments made by the
company as a fiduciary must be designated so that the trust or estate to which
the investments belong may be clearly identified.

(b) Holding trust funds awaiting investment or
distribution may deposit or leave those
funds on deposit [such funds]
with a state or national bank. [Such]The funds must not
be deposited or left with the same corporation depositing them or leaving them
on deposit, [nor]or with a corporation or
association holding or owning a majority of the [capital]
stock of the trust company making or leaving the deposit, unless that
corporation or association first pledges, as security for the deposit,
securities eligible for investment by state banks which have a market value
equal to that of the deposited funds. No security is required with respect to
any portion of [such deposits which]the deposits that is
insured under the provisions of any law of the United States.

(c) Acting in any capacity under a court trust
or private trust, unless the instrument creating the trust provides otherwise,
may cause any securities held by it in its representative capacity to be
registered in the name of a nominee or nominees of the company.

(d) When acting as depositary or custodian for
the personal representative of a court trust or private trust, unless the
instrument creating the trust provides otherwise, may with the consent of the
personal representative of the trust, cause any securities held by it to be
registered in the name of a nominee or nominees of the company.

2. Every trust company is liable for any
loss occasioned by the acts of its nominees with respect to securities
registered under this section.

3. No corporation or the registrar or
transfer agent of the corporation is liable for registering or causing to be
registered on the books of the corporation any securities in the name of any
nominee of a trust company or for transferring or causing to be transferred on
the books of the corporation any securities registered by the corporation in
the name of any nominee of a trust company when the transfer is made on the
authorization of the nominee.

The aggregate market value of all investments must equal or
exceed 60 percent of the companys current [capital,
surplus and undivided profits]stockholders equity or 60 percent of the
companys [capital and surplus when it was
organized,]initial
stockholders equity, whichever is greater.

5. A trust company may purchase or rent
land and equipment for use in the daily activities of the company.

Sec. 70. Chapter 670 of NRS
is hereby amended by adding thereto a new section to read as follows:

The
stockholders equity of a development corporation must not be less than $500,000.

Sec. 71. NRS 670.080 is
hereby amended to read as follows:

670.080 The articles of
incorporation of the corporation must contain:

1. The name of the corporation, which
must include the words development corporation.

2. The location of the principal office
of the corporation, but the corporation may have other offices as the board of
directors deems necessary [, but all offices of
the corporation must be]if those offices are located in this state.

3. The purposes for which the corporation
is founded, which must be:

(a) To assist, encourage, develop and advance
the business prosperity and economic welfare of this state;

(b) To encourage and assist in the location of
new business and industry in this state and to rehabilitate existing business
and industry;

(c) To stimulate and assist in the expansion of
all kinds of business activity which will tend to promote the business
development and maintain the economic stability of this state, provide maximum
opportunities for employment, encourage thrift and improve the standard of
living of the [citizens]residents of this state;

(d) To cooperate and act in conjunction with
other organizations, public or private, the objects of which are the promotion
and advancement of industrial, commercial, agricultural and recreational
developments in this state; and

(e) To furnish money and credit to approved and
deserving applicants, for the promotion, development and conduct of all kinds
of business activity in this state, thereby establishing a source of credit not
otherwise readily available [therefor.]for those purposes.

4. The names and post office addresses of
the members of the first board of directors, who, unless otherwise provided by
the articles of incorporation or the bylaws, shall hold office for the first
year of existence of the corporation or until their successors are elected and
have qualified.

5. Any provision which the incorporators
may choose to insert for the regulation of the business and for the conduct of
the affairs of the corporation and any provision creating, dividing, limiting
and regulating the powers of the corporation, the directors, stockholders or
any class of the stockholders, including , but not limited to , a list of the officers, and provisions governing the issuance of stock certificates to
replace lost or destroyed certificates, except that no provision may be
included for cumulative voting for directors.

provisions governing the issuance of stock certificates to
replace lost or destroyed certificates, except that no provision may be
included for cumulative voting for directors.

6. The amount of authorized [capital] stock and the number of shares
into which it is divided, the par value of each share and the amount of [capital]stockholders equity with which the
corporation will commence business and, if there is more than one class of
stock, a description of the different classes .[; the]

7. The
names and addresses of the preorganization subscribers of stock
and the number of shares subscribed by each. [The
aggregate of the subscription is the minimum amount of capital with which the
corporation may commence business , which may not be less
than $500,000.

7.]8. Any
provision consistent with the laws of this state for the regulation of the
corporation.

[8.]9. A
recitation that the corporation is organized under the provisions of this
chapter.

Sec. 72. NRS 670A.080 is
hereby amended to read as follows:

670A.080 The
articles of incorporation of the corporation must contain:

1. The name of the corporation, which
must include the words corporation for economic revitalization and
diversification.

2. The location of the principal office
of the corporation, but the corporation may have other offices as the board of
directors deems necessary.

3. The purposes for which the corporation
is founded, which must be to:

(a) Assist, promote, encourage, develop and
advance the economic welfare and diversification of the state in accordance
with the state plan for economic development;

(b) Facilitate and assist in the location of new
business, commerce and industry in the state, and to rehabilitate and
revitalize existing business, commerce and industry;

(c) Stimulate and assist in the expansion of
business activity which will tend to promote business development and
diversification that would result in the economic stability of the state;

(d) Provide new opportunities for employment;

(e) Cooperate and act in conjunction with public
or private organizations and governmental agencies, the objectives of which are
the support and advancement of business, commercial, industrial, agricultural
and recreational activity that would advance the economic welfare of the state,
promote economic diversification, and effectuate any state or local plan for
economic development; and

(f) Furnish money and credit to approved and
deserving applicants who would assist in achieving or carrying out any of the
purposes described in this subsection.

4. The names and post office addresses of
the members of the first board of directors, who, unless otherwise provided by
the articles of incorporation or the bylaws, shall hold office for the first
year of existence of the corporation or until their successors are elected and
have qualified.

5. Any provision which the incorporators
may choose to insert for the regulation of the business and for the conduct of
the affairs of the corporation and any provision creating, dividing, limiting
and regulating the powers of the corporation, the directors, stockholders or
any class of the stockholders, including , but not limited to , a list of the officers, and provisions
governing the issuance of stock certificates to replace lost or destroyed
certificates, except that no provision may be included for cumulative voting
for directors.

6. The amount of authorized [capital] stock and the number of shares
into which it is divided [, the amount of capital
with which the corporation will commence business] and, if there
is more than one class of stock, a description of the different classes . [;
the]

7. The
names and addresses of the preorganization subscribers of stock
and the number of shares subscribed by each.

[7.]8. Any
provision consistent with the laws of this state for the regulation of the
corporation.

[8.]9. A
recitation that the corporation is organized under the provisions of this
chapter.

Sec. 73. NRS 670A.200 is
hereby amended to read as follows:

670A.200 1. Each
member shall lend money to the corporation as and when called upon by it to do
so, but the total amount on loan by any member at any one time must not exceed
the limits described in subsections 2 and 3, to be determined as of the time
the financial institution or insurer becomes a member. The amount may
thereafter be readjusted annually if any change in the base of the loan limit
of the member occurs.

2. The loan limits are, for:

(a) Banks and stock insurance companies, 2
percent of [capital and surplus, or surplus fund,
as the case may be.]the
stockholders equity of the bank or company.

(d) Other financial institutions and insurance
companies, and Nevada corporations described in NRS 670A.190, [as]an amount established by the board of
directors.

3. Except as otherwise provided in this subsection , the total amount on loan
by any member at any one time must not exceed $250,000. Any member who has a
loan limit in excess of $250,000, may elect that its total amount on loan at
any one time to the corporation equal its loan limit, but in no event may it
exceed $500,000.

4. All loan limits must be established at
the thousand dollar figure nearest to the amount computed on an actual basis.

Sec. 74. NRS 670A.230 is
hereby amended to read as follows:

670A.230 1. The
[capital] stock of the corporation
must be 20,000 shares of no par value, which must be issued for $100 per share
in cash. At least 5 percent of the [capital stock]initial stockholders equity
of the corporation must be paid into its treasury in cash before it may
transact any business other than [such as relates]business relating to
its organization.

2. At least a majority of the [capital] stock of the corporation must
at all times be held by residents of the state or by persons engaged in doing
business in Nevada.

3. A financial institution which does not
become a member of a corporation established under this chapter may not acquire
any shares of the [capital] stock
of the corporation.

4. Except as otherwise provided in this subsection, any
financial institution which becomes a member of a corporation established under
this chapter may acquire, purchase, hold, sell, assign, transfer, mortgage,
pledge or otherwise dispose of any shares of the [capital]
stock of the corporation [,] and , while the owner of those
shares, may exercise all the rights, powers and privileges of ownership,
including the right to vote thereon, all without the approval of any regulatory
authority of this state. The amount of the [capital]
stock of the corporation which may be acquired by any member under this section
may not exceed 10 percent of the loan limit of the member. The amount of [capital] stock of the corporation which
any member may acquire under this section is in addition to the amount of [capital] stock in corporations which the
member is otherwise authorized to acquire.

5. The holders of [capital]
stock of the corporation do not, as such, have any preemptive or preferential
right to purchase or subscribe for any part of the unissued or new issue of [capital] stock of the corporation,
whether now or hereafter authorized or issued, or to purchase or subscribe for any
bonds or other obligations, whether or not convertible into stock of the
corporation, now or hereafter authorized or issued.

Sec. 75. NRS 670A.240 is
hereby amended to read as follows:

670A.240 1. The
corporation shall set apart as an earned surplus all of its net earnings in
each year until the earned surplus equals [the
total of the paid-in capital and paid-in surplus]50 percent of the stockholders equity
then outstanding. The earned surplus must be held in cash, invested in United
States government bonds, or as provided in the corporations bylaws, and be
kept and used to meet losses and contingencies of the corporation , and [,] whenever the amount of earned surplus
becomes impaired, it must be built up again to the required amount in the
manner provided for its original accumulation.

2. At no time may the total obligations
of the corporation exceed ten times the amount of its [paid-in
capital and surplus,]stockholders equity, not including therein the earned
surplus, or $50 million, whichever is greater.

3. The corporation shall not deposit any
of its money in any financial institution unless the financial institution has
been designated as a depository by a vote of the majority of all of the
directors of the corporation, exclusive of any director who is an officer or
director of the designated depository
. [so designated.] The corporation shall
not receive money on deposit [. The corporation
shall not]or
make any loans directly or indirectly to any of its officers or to any firms in
which any of its officers is a member or officer.

Sec. 79. The provisions of chapters 78 and 92A of NRS that are not in
conflict with this chapter are hereby adopted as part of this chapter.

Sec. 80. A corporation authorized to engage in business pursuant to
this chapter may form a bank pursuant to the provisions of subsection 2 of NRS
659.015.

Sec. 81. NRS 677.020 is
hereby amended to read as follows:

677.020 As used in this
chapter, unless the context otherwise requires, the words and terms defined in
NRS 677.030 to 677.140, inclusive, and
section 78 of this act have the meanings ascribed to them in
those sections.

Sec. 82. NRS 677.150 is
hereby amended to read as follows:

677.150 [When]If authorized by the
commissioner, as provided in this chapter, a corporation may be formed [by three or more persons] in accordance
with the laws of this state to engage in business under this chapter.

Sec. 83. NRS 677.190 is
hereby amended to read as follows:

677.190 The commissioner
shall not approve the application unless he ascertains to his satisfaction:

1. That the public convenience and
advantage will be promoted by the establishment of the proposed corporation.

2. That the corporation is being formed
for no other purpose than the legitimate objectives contemplated by this
chapter.

3. That the proposed capital structure is
adequate.

4. That the financial responsibility,
character and general fitness of the proposed officers, directors, [shareholders]stockholders and other investors are such as
to command the confidence of the community and to warrant belief that the
business will be operated honestly and fairly within the purpose of this
chapter, and that the proposed officers and directors have sufficient banking,
industrial loan or other experience, ability and standing to afford reasonable
promise of successful operation.

5. That the applicant has complied with
all the applicable provisions of this chapter.

Sec. 84. NRS 677.200 is
hereby amended to read as follows:

677.200 [1. Except
in the case of a merger between an out-of-state depository institution and a
Nevada depository institution or an out-of-state depository
institution that otherwise establishes or acquires a branch in Nevada pursuant
to the provisions of chapter 666 of NRS, all officers and a majority of the
directors of a corporation formed to engage in business under this chapter must
be residents of this state.

depository institution that otherwise
establishes or acquires a branch in Nevada pursuant to the provisions of
chapter 666 of NRS, all officers and a majority of the directors of a
corporation formed to engage in business under this chapter must be residents
of this state.

2.] The
president of the corporation must have not less than 10 [years]years of experience
in a regulated financial institution in this state, or in any other state or
the District of Columbia. The manager of the principal office and any branch
office must have not less than 2 [years]years of experience
in a regulated financial institution in this state, or in any other state or
the District of Columbia.

Sec. 85. NRS 677.210 is
hereby amended to read as follows:

677.210 The [paid-in
capital]stockholders
equity of any corporation formed to do business under this
chapter [shall]must not be less than [$250,000. In addition, such corporation shall have as
its capital surplus, 20 percent of its paid-in capital and shall have as its
undivided profit 10 percent of its paid-in capital, plus additional capital of]$325,000, plus an additional
$25,000 for each of its branch
[office.]offices.

Sec. 86. NRS 677.241 is
hereby amended to read as follows:

677.241 Subject to the prior approval of
the commissioner, a licensee may, by a majority vote of its board of directors:

1. Enter into a contract, incur an
obligation and perform other acts necessary to obtain a membership or other
benefit that is available to a thrift company or its customers, stockholders,
conservators, receivers or liquidators pursuant to the provisions of:

(c) A contract of
insurance obtained by a licensee pursuant to paragraph (c) of subsection 1 of
NRS 677.247.]

2. Subscribe for and acquire any stock,
debentures, bonds or other types of securities of the Federal Deposit Insurance
Corporation.

Sec. 87. NRS 677.243 is
hereby amended to read as follows:

677.243 1. Each licensee [must]shall maintain a record that includes for each
employee:

(a) His full name;

(b) The address of each place at which he has
resided during the previous 10 years;

(c) The name and address of each employer during
the previous 10 years;

(d) A recent photograph of the employee
measuring 3 by 5 inches; and

(e) Any alias used by the employee.

2. A licensee may comply with the provisions of subsection 1 by
maintaining the employee identification information required pursuant to 26
C.F.R. Part 31.

3. The
information contained in [this]the record required pursuant to this section
must be provided to the commissioner upon his request , but is otherwise confidential.

Sec. 88. NRS 677.245 is
hereby amended to read as follows:

677.245 1. Unless
the licensee has received a written waiver from the commissioner, the total
amount of money that [it]the licensee has advanced or committed for the real property that it has developed or
constructed may not exceed twice the sum of its [capital, surplus, undivided
profits, reserve for loans, reserve for federal insurance] stockholders equity
and any other reserves [specified] required by the commissioner.

or committed for the real property that it has developed or
constructed may not exceed twice the sum of its [capital,
surplus, undivided profits, reserve for loans, reserve for federal insurance]stockholders equity
and any other reserves [specified]required by the
commissioner.

2. If a licensee acquires title to any
real property pursuant to the provisions of subsection 1 of NRS 677.630, the
deed or other document representing the transaction must be recorded [immediately.]within a reasonable time after the acquisition of that
property.

3. An account must be established for the
acquired property with a separate subsidiary ledger or other appropriate
record. The amount carried in the account must be the sum of the unpaid
principal balance of any loan made by the licensee that was secured by the
foreclosed property plus the cost of the foreclosure less any advance payments
held in the account for loans in progress at the time of acquisition, together
with:

(a) Any amount paid after acquisition for taxes
on the property that accrued before the acquisition;

(b) Assessments that are due or delinquent at
the time of acquisition;

(c) Any other costs of acquisition; and

(d) The cost of insurance on the property.

4. The subsidiary ledger or other
appropriate record must indicate as to each property:

(a) The type and character of the property;

(b) All the capitalized items of investment and
their cost; and

(c) The account number of the former loan or
contract of sale.

Sec. 89. NRS 677.247 is
hereby amended to read as follows:

677.247 1. [An]Except as otherwise provided in subsection 2, an
applicant for an authorization to engage in the business regulated pursuant to
this chapter must obtain:

(b) The insurance of deposits provided pursuant
to the provisions of the National Housing Act (12 U.S.C. §§ 1701 to 1743,
inclusive) . [; or

(c) A contract for the
insurance of deposits which is issued by a private insurer approved by the
commissioner and the commissioner of insurance pursuant to NRS 677.249. Such a
contract must be approved by the commissioner and the commissioner of
insurance. The issuance of a contract of insurance is not transacting insurance
for the purposes of Title 57 of NRS.

2. An applicant
must first attempt to obtain the insurance of deposits provided pursuant to the
provisions of the Federal Deposit Insurance Act (12 U.S.C. §§ 1811 et seq.) or
the National Housing Act (12 U.S.C. §§ 1701 to 1743, inclusive) before
obtaining a contract of insurance. The commissioner and the commissioner of
insurance shall not approve a contract of insurance for an applicant unless
they are satisfied that the reasons why the applicant has not obtained
insurance under those provisions do not indicate that the protection intended
to be afforded to the depositors by this act will be substantially impaired.

3. The
commissioner and the commissioner of insurance shall not approve a contract of
insurance unless the protection afforded thereby to the depositors is substantially equivalent to the protection
afforded by the Federal Deposit Insurance Corporation to the depositors of the
accounts that it insures.]

depositors is substantially
equivalent to the protection afforded by the Federal Deposit Insurance
Corporation to the depositors of the accounts that it insures.]

2. A
person who:

(a) Is
licensed pursuant to this chapter before October 1, 1997; and

(b) Has
not obtained the insurance of deposits provided in subsection 1, may obtain a
contract for the insurance of deposits that is issued by a private insurer. The
contract must be approved by the commissioner and the commissioner of
insurance.

3. The
commissioner shall adopt regulations prescribing the requirements that must be
complied with before a contract issued pursuant to subsection 2 will be
approved by him.

Sec. 90. NRS 677.250 is
hereby amended to read as follows:

677.250 When authorized by the
commissioner as provided in this chapter, a licensee, pursuant to a resolution
of its board of directors, may establish and maintain one or more branch
offices within or outside the
state.

Sec. 91. NRS 677.270 is
hereby amended to read as follows:

677.270 1. The
commissioner shall not approve an application for a branch office until he has
ascertained to his satisfaction that the facts set forth in the application are
true and:

(a) That [the]
public convenience and advantage will be promoted by the establishment of the
proposed branch office.

(b) That the licensee has the [capital]stockholders equity required by this chapter.

2. The commissioner must give his
approval or denial for [a branch]an application for a branch office to the
licensee within 45 days [from]after the date of
application to open a branch office unless the commissioner gives notice within
the original 45-day period that he is extending the period for decision for a [term]period not to exceed an additional 45 days.

Sec. 92. NRS 677.400 is
hereby amended to read as follows:

677.400 1. Annually, on or
before May 15, unless the commissioner grants a written extension, each
licensee shall file with the commissioner a report of operations of the
licensed business for the preceding calendar year.

2. The report must give information with
respect to the financial condition of the licensee [and
include balance],
including, without limitation:

(a) Balance
sheets at the beginning and end of the year [,];

(b) A
statement of income and expenses for the period [,];

(c) A
reconciliation of the
surplus or net worth with the balance sheets [,] ;

(d) A
schedule of the assets
used and useful in the licensed business [,] ;

(e) The
size of loans [,]and an analysis of
charges, including the monthly
average number and amount of loans outstanding [,];

(f) An
analysis of delinquent accounts [,];

(g) Any
court actions undertaken to effect collection [, and any]; and

(h) Any
further statistical information reasonably prescribed by the commissioner.

3. The report must be made under oath and
be in the form prescribed by the commissioner.

4. If any person or affiliated group
holds more than one license in [the]this state, that
person or group may file a composite annual report, if a short form of report
applicable to each licensed office accompanies the report.

5. A
licensee may comply with the provisions of this section by filing with the
commissioner a copy of the annual audit report filed by the licensee with the
Federal Deposit Insurance Corporation pursuant to 12 U.S.C. § 1831m.

Sec. 93. NRS 677.420 is
hereby amended to read as follows:

677.420 1. A
licensee shall [immediately] notify
the commissioner of any change in the ownership of [5]10 percent or more
of the outstanding voting stock of the licensee [.]within 3 business days after the licensee
has knowledge of the change.

2. An application for approval must be
submitted to the commissioner by a person who acquires:

(a) At least 25 percent of a licensees
outstanding voting stock; or

(b) Any outstanding voting stock of a licensee
if the change will result in a change in the control of the licensee.

Except as otherwise provided in subsection 4, the
commissioner shall conduct an investigation in accordance with NRS 677.180. If
the commissioner denies the application, he may forbid the applicant from
participating in the business of the licensee.

3. The licensee with which the applicant
is affiliated shall pay such a portion of the cost of the investigation as the
commissioner requires. All money received by the commissioner pursuant to this
subsection must be placed in the investigative account created by NRS 232.545.

4. A licensee may submit a written
request to the commissioner to waive an investigation pursuant to subsection 2.
The commissioner may grant a waiver if the applicant has undergone a similar
investigation by a state or federal agency in connection with the licensing of
or his employment with a financial institution.

Sec. 94. NRS 677.540 is hereby
amended to read as follows:

677.540 Whenever it appears to the
commissioner that:

1. The [capital]stockholders equity
of any licensee is [impaired;]less than its initial stockholders
equity;

2. Any licensee has violated its articles
of incorporation or any law of this state;

3. Any licensee is conducting its business
in an unsafe or unauthorized manner;

4. Any licensee refuses to submit its
books, papers and affairs to the inspection of any examiner;

5. Any officer of any licensee refuses to
be examined upon oath touching the concerns of the licensee;

6. Any licensee has suspended payment of
its obligations;

7. Any licensee is in a condition that it
is unsound or unsafe for it to transact business;

8. Any licensee neglects or refuses to
observe any order of the commissioner made pursuant to this chapter unless the
enforcement of the order is restrained in a proceeding brought by the licensee;

9. Any licensee has accepted deposits in
violation of the provisions of this chapter; or

10. Any fact or condition exists which,
if it had existed at the time of the original application for authority to
organize and establish a corporation to engage in business under this chapter , it reasonably would have
warranted the [commissioner in disapproving]disapproval of the
application [,]by the commissioner,

the commissioner may forthwith take possession of the
property and business of the licensee and retain possession until it resumes
business or its affairs are finally liquidated as provided in this chapter. The
licensee, with the consent of the commissioner, may resume business upon such
conditions as [he]the commissioner may
prescribe.

Sec. 95. NRS 677.590 is
hereby amended to read as follows:

677.590 [This]

1. Except
as otherwise provided in subsection 2, this chapter does not
permit a licensee to issue thrift certificates.

2. A
licensee who maintains a branch office located outside this state may issue
thrift certificates and any other securities that are permitted to be issued by
a licensee pursuant to the laws of the state in which the branch office is
located.

Sec. 96. NRS 677.600 is
hereby amended to read as follows:

677.600 A licensee shall not deposit any
of its money with any other moneyed corporation, unless that corporation has
been designated as a depository by a majority vote of the directors or the
executive committee, exclusive of any director who is an officer, director or
trustee of the depository so designated. Such a depository must be a federally
insured financial institution [licensed to do
business in this state] or any Federal Reserve Bank.

Sec. 97. NRS 677.620 is
hereby amended to read as follows:

677.620 1. Except as
otherwise provided in subsections 2 and 3, a licensee shall not have at any
time deposits in an aggregate sum in excess of 10 times the aggregate amount of
its [paid-up and unimpaired capital and
unimpaired surplus.]stockholders
equity.

2. A licensee insured by the Federal Deposit
Insurance Corporation shall comply with the limits imposed by that insurer [.], if any.

3. If a licensee has operated under this
chapter for 1 year or more and during its most recent fiscal year has been
profitable, the commissioner may increase the ratio of deposits to [paid-up and unimpaired capital and unimpaired surplus]stockholders equity
prescribed in subsection 1 to not more than the greatest net worth to savings
ratio permitted for any savings and loan association operating in this state.
The commissioner shall give his approval or denial of the application for an
increased ratio to the licensee in writing with supporting reasons within 30
days after the date of the application
submitted by the
licensee unless the commissioner gives notice within the original 30-day period
that he is extending the period for decision for a [term]period not to exceed
an additional 30 days. The commissioner may, for
reasonable cause, decrease the ratio [permitted] authorized under this
subsection at any time, but not below the ratio prescribed in subsection 1.

may, for reasonable cause, decrease the ratio [permitted]authorized under this subsection at any time,
but not below the ratio prescribed in subsection 1.

4. A licensee may not have total
borrowings, exclusive of deposits, which exceed the larger of:

(a) Five times its [capital
and surplus;]stockholders
equity; or

(b) The face amount of total deposits at the
time a borrowing is made.

5. [Except
as otherwise provided in subsection 6, each licensee shall establish a
liquidity reserve immediately upon beginning business, as a special account
with an initial balance of $50,000. Money cannot be withdrawn from the reserve
or the account put to any other use without the permission of the commissioner.
Money in the reserve may be invested only in obligations of the United States,
this or any other state, or federally insured financial institutions in this
state or any Federal Reserve Bank. At least annually, but no later than at the
end of each fiscal year of the licensee, an amount equal to 1 percent of the
licensees deposits must be added to the reserve until its balance reaches 1.5
percent of the net deposits. Interest earned on the principal of the reserve
must not be withdrawn except as permitted for other money of the reserve, but
may be credited against the required addition.

6. If the deposits
of a licensee are insured pursuant to the provisions of NRS 677.247, the
licensee need not maintain a liquidity reserve.]A licensee may borrow money from a
Federal Home Loan Bank. Money borrowed pursuant to this subsection shall not be
deemed borrowed money for the purposes of the limitations prescribed in
subsection 4. A licensee may pledge any of its assets as collateral security
for money borrowed pursuant to this subsection.

Sec. 98. NRS 677.630 is
hereby amended to read as follows:

677.630 1. A
licensee may purchase, hold, develop and convey real property, including
apartments and other buildings, for the following purposes only:

(a) Real property conveyed to it in satisfaction
of debts contracted in the course of its business.

(b) Real property purchased at sale under
judgments, decrees or mortgage foreclosures or foreclosures of or trustees
sales under deeds of trust, or pursuant to an order of a bankruptcy court. A
licensee shall not bid against its debtor at any such sale in a larger amount
than is necessary to satisfy its debt and costs.

(c) Real property necessary as premises for the
transaction of its business. A licensee shall not invest directly or indirectly
an amount exceeding one-third of its [paid-up
capital and surplus]stockholders
equity in the lot and building in which the business of the
company is carried on, furniture and fixtures, and vaults, necessary and proper
to carry on its business.

(d) Real property purchased or held for the
purpose of development. An investment for this purpose must not exceed the
market value of the property as evidenced by an appraisal prepared by a member
of the American Institute of Real Estate Appraisers, the National Association
of Review Appraisers and Mortgage Underwriters, the Society of Real Estate Appraisers or the Independent Fee Appraisers Society [, or by]
or an appraiser approved by the commissioner.

Appraisers or the Independent Fee Appraisers Society [, or by]or an appraiser approved by the commissioner.
Within 120 days after the investment is made:

(1) The licensee shall provide the
commissioner with a certified copy of one or more appraisal reports and a report
from a title insurer which shows ,
for not less than the immediately preceding 3 years, the chain of
title and the amount of consideration for which the title was transferred, if
that information is available . [, for at least 3 years.]

(2) The commissioner may require a
statement from the licensee disclosing whether any director, officer or
employee of the licensee has, or has had within the [last]immediately preceding
3 years, any direct or indirect interest in the property. For the purposes of this
subparagraph, interest includes ownership of stock in a corporation which has
an interest in the property.

If the total amount to be invested in real property for
residential development, excluding any real property which is mortgaged to the
licensee as security for money owing to the licensee, exceeds the [licensees capital accounts,]stockholders equityof the licensee, the
investment may not be made without the written approval of the commissioner.
Any person who fails to make a disclosure required by this section is guilty of
a misdemeanor.

2. No real estate acquired pursuant to
paragraph (a) or (b) of subsection 1 may be held for a longer period than 5
years unless it has been improved by the licensee and is producing a fair
income based upon the appraised value.

Sec. 99. NRS 677.650 is
hereby amended to read as follows:

677.650 1. Except as otherwise provided in
subsection 2, a licensee shall not directly or indirectly make any loan to, or
purchase a contract or chose in action from:

(a) A person who is an officer, director or
holder of record or beneficiary of 10 percent or more of the shares of the
licensee ; [.]

(b) A person in which an officer, director or
holder of record or beneficiary of 10 percent or more of the shares of the licensee
directly or indirectly is financially interested [.]; or

(c) A person who acquired the contract directly
or indirectly or through intervening assignments from a person described in
paragraph (a) or (b) [.], unless the licensee has been
authorized by the commissioner to make that loan or purchase that contract or
chose in action from that person.

2. Loans may be made to an officer,
director or [shareholder]stockholder of the
licensee, upon collateral of his deposits with the licensee, of not more than
90 percent of the amount of his deposits, at the same rates of interest and
under the same terms as loans secured by deposits are offered to members of the
general public.

3. Any officer, director or [shareholder]stockholder of a licensee who [directly or indirectly]:

(a)Knowingly and intentionally
makes or procures or participates in making or procuring , directly or indirectly, a loan or contract
in violation of this section [or knowingly
approves such]; or

(b) Knowingly
approves a loan or contract in violation of this section, is personally liable for any loss resulting to the licensee
from the loan or contract, in addition to any other penalties provided by law.

is personally liable for any loss resulting to the licensee
from the loan or contract, in addition to any other penalties provided by law.

Sec. 100. NRS 677.660 is
hereby amended to read as follows:

677.660 1. A person shall
not advertise, print, display, publish, distribute or broadcast or cause or
permit to be advertised, printed, displayed, published, distributed or
broadcast, in any manner, any statement or representation with regard to the
rates, terms or conditions for making or negotiating loans, or with regard to
deposits, which is false, misleading or deceptive.

2. Except as otherwise provided in this
subsection, a licensee shall not use any advertising or make any
representations which indicate, imply or might lead a person to believe that it
is a bank, a thrift company or a savings bank, unless it is insured by the
Federal Deposit Insurance Corporation. The provisions of this subsection do not
apply to a thrift company that does not accept money for deposit.

3. A licensee whose deposits are insured
by the Federal Deposit Insurance Corporation [or
a private insurer] shall include that information in its
advertising relating to deposits.

Sec. 101. NRS 677.730 is
hereby amended to read as follows:

677.730 [1.]
A licensee may lend any amount of money:

[(a)]1. At any
rate of interest;

[(b)]2. Subject to
the imposition of any charge in any amount; and

[(c)]3. Upon any
schedule of repayment,

to which the parties may agree.

[2. Secured
loans or obligations of $50,000 or more other than those secured by deposits
with the licensee must be secured by collateral having a market value of at
least 115 percent of the amount due on the loans or obligations. On loans
secured by deposits with the licensee, the net amount advanced must not exceed
90 percent of the amount of the deposits used as collateral.]

Sec. 102. NRS 677.760 is
hereby amended to read as follows:

677.760 1. A licensee shall not lend in the aggregate
more than [5]10 percent of its [capital
and surplus not available for dividends upon:

1.]stockholders equity upon:

(a) The
security of the stock of any one corporation, which stock , except as otherwise provided in subsection 2,
may not exceed 10 percent of the outstanding stock of that corporation .[except
that, if the licensee has obtained other security from the borrower which
satisfies the provisions of subsection 2 of NRS 677.730, the licensee may
accept as security any amount of the stock of that corporation.

2.](b) The security of
the bonds of any one obligor except:

[(a)](1) Bonds of the
United States or for the payment of which the credit of the United States is
pledged;

[(b)](2) Bonds of the State of
Nevada, or for the payment of which the credit of the State of Nevada is
pledged; and

[(c)](3) Bonds which are
general obligations of any county, city, metropolitan water district, school
district or irrigation district of the State of Nevada.

2. The
stock of a corporation upon the security of which a licensee loans money
pursuant to paragraph (a) of subsection 1 may exceed 10 percent of the
outstanding stock of that corporation if:

(a) The
licensee has secured collateral, other than deposits with the licensee, which
has a market value of not less than 115 percent of the amount loaned; or

(b) The
loans are secured by deposits with the licensee and the amount of the money
loaned does not exceed 90 percent of the deposits used as collateral.

Sec. 103. NRS 677.770 is
hereby amended to read as follows:

677.770 [1. Except
for a licensee that is insured by the Federal Deposit Insurance Corporation, a
licensee shall not make an unsecured loan of more than one-tenth of 1 percent
of its total assets or make loans that are in the aggregate more than 5 percent
of its total assets.

2.] Secured
loans or obligations of any one person as primary obligor made or held by a
licensee may not, in any event, exceed in the aggregate 25 percent of the [capital and surplus]stockholders equity of
the licensee. Loans secured by deposits with the licensee must not be included
in applying this limitation.

Sec. 104. NRS 677.800 is hereby
amended to read as follows:

677.800 Any
person and the [several] members,
officers, directors, agents and employees thereof who [shall]knowingly and intentionally
violate or participate in the violation of any provision of this chapter [is]are guilty of a misdemeanor, unless a greater
penalty is provided in this chapter.

Sec. 104.5. Section 1 of
Assembly Bill No. 8 of this session is hereby amended to read as follows:

Section 1. NRS
661.145 is hereby amended to read as follows:

661.145 1. No
person is eligible to serve as a director or manager of any bank, organized or
existing under the laws of this state, unless he [is]:

(a) Is a bona fide owner of stock
of the bank or its holding company [, or has];

(b) Holds stock of the bank or its holding
company in a revocable trust; or

(c) Has a members interest in
the bank.

2. The stock or interest
owned or held pursuant to
subsection 1 must have a total fair market value of at least
$1,000. A determination of the value of the stock or interest must be based on
its value on the date it was purchased or on its value on the date the owner or holder of the stock or interest
became a director, whichever is greater. The stock or the members contribution
must be fully paid and not pledged.

[2.]3. For
the purposes of this section, holding company has the meaning ascribed to it
in NRS 666.005.

Sec. 106. 1. This
section and sections 1 to 85, inclusive, 87, 88 and 90 to 104.5, inclusive, of
this act, and subsection 1 of section 105 of this act become effective upon
passage and approval.

2. Section 89 of this act becomes
effective:

(a) Upon passage and approval for the purposes
of adopting the regulations required pursuant to that section; and

(b) On October 1, 1997, for all other purposes.

3. Section 86 of this act and subsection
2 of section 105 of this act become effective on October 1, 1997.

________

CHAPTER 287, AB 38

Assembly Bill No.
38Assemblyman Bache

CHAPTER 287

AN ACT relating to employment practices;
authorizing an employee or person referred to an employer by a labor
organization to submit written material for inclusion in his record of
employment; prohibiting the maintenance of a secret record of employment; and
providing other matters properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS
613.075 is hereby amended to read as follows:

613.075 1. Any
person or governmental entity who employs and has under his direction and
control any person for wages or under a contract of hire, or any labor
organization referring a person to an employer for employment, shall, upon the
request of that employee or person referred:

(a) Give him
a reasonable opportunity, during the usual hours of business, to inspect any
records kept by that employer or labor organization containing information
used:

(1) By
the employer or labor organization to determine the qualifications of that
employee and any disciplinary action taken against him, including termination
from that employment; or

(2) By
the labor organization with respect to that persons position on its list
concerning past, present and future referrals for employment; and

(b) [Subject to the provisions of subsection 5, furnish] Furnish him with a copy
of those records.

The records to be made
available do not include confidential reports from previous employers or
investigative agencies , other
confidential investigative files concerning the employee or person referred
or information concerning the investigation, arrest or conviction of that
person for a violation of any law.

2. An employer or labor organization shall
allow an employee or person referred to submit a reasonable written explanation
in direct response to any written entry in the records of employment regarding
the employee or person. Any such written explanation must be reasonable in
length, in a format prescribed by the
employer and maintained by the employer or labor organization in the records of
employment.

format prescribed by the employer and maintained by the
employer or labor organization in the records of employment.

3. An employer or labor organization
shall not maintain a secret record of employment regarding an employee or
person referred.

4. Upon termination of
employment, [the]an employer shall allow [the]an employee to inspect [those]his records of employment within 60
days after his termination of employment and [,
subject to the provisions of subsection 5, ]shall, if
requested by that former employee within that period, furnish him with a copy
of those records.

[3. The]

5. An employer or labor
organization may only charge [that]an employee or person
referred an amount
equal to the actual cost of providing access to and copies of [those records.

4.] his records of employment.

6. The employee or person
referred shall, if he contends that any information contained in the records is
inaccurate or incomplete, notify his employer or the labor organization in
writing of his contention. If the employer or labor organization finds that the contention
of that employee or person is correct, it shall change the information
accordingly.

[5.]7. No copies
may be furnished to an employee or former employee under this section unless he
has been or was employed for more than 60 days.

AN ACT relating to wildlife; revising the
provisions governing the requirements for the issuance of a hunting license and
the suspension or revocation of certain licenses, permits and privileges by the
board of wildlife commissioners and the division of wildlife of the state
department of conservation and natural resources; and providing other matters
properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 501.1812 is
hereby amended to read as follows:

501.1812 As used in NRS 501.1812 to
501.1818, inclusive, unless the context otherwise requires:

1. Permit does not include a permit
issued by the division pursuant to NRS 502.390 authorizing the development or
maintenance of an artificial or man-made body of water.

2. Wildlife [violation]conviction means a
conviction obtained in any court of competent jurisdiction in this state , including, without limitation, a conviction obtained upon a plea of nolo contendere or upon a
forfeiture of bail not vacated in any such court, for a violation of [a] :

conviction
obtained upon a plea of nolo contendere or upon a forfeiture of bail not
vacated in any such court, for a violation of [a]:

(a) A
provision of this Title or any regulation adopted pursuant to this Title [.]other than a provision of NRS 502.370, 502.390, 503.185,
503.310 or 504.300 to 504.390, inclusive; or

(b) A
provision of the Lacey Act Amendments of 1981 (Pub. L. No. 97-79, Nov. 16,
1981), if the violation of that provision is based on a violation of a law or
regulation of this state.

Sec. 2. NRS 501.1814 is
hereby amended to read as follows:

501.1814 1. The commission
shall establish and the division shall administer and enforce a system of
assessing demerit points for wildlife [violations
against any person convicted of a wildlife violation.]convictions. The system
must be uniform in its operation.

2. Pursuant to the schedule of demerit
points established by regulation [by]of the commission
for each wildlife [violation]conviction occurring
within this state affecting any holder of a hunting, fishing or trapping license ,[or]
permit or privilege
issued pursuant to this Title, the division shall assess demerit points for the
60-month period preceding a persons most recent wildlife [violation.]conviction. Sixty months after the date of the
[violation,]conviction, the demerit points for that [violation]conviction must be deleted from the total
demerit points accumulated by that person. The date of the violation shall be
deemed the date on which accumulated demerit points must be assessed. If a
conviction of two or more wildlife violations committed at a single event is
obtained, demerit points must be assessed for the offense having the greater
number of demerit points.

Sec. 3. NRS 501.1816 is
hereby amended to read as follows:

501.1816 1. If a person
accumulates 6 or more demerit points, but less than 12, the division shall
notify him of that fact by certified mail. If, after the division mails the
notice, the person presents proof to the division that he has, after his most
recent wildlife [violation,]conviction, successfully
completed a course of instruction in the responsibilities of hunters approved
by the division, the division shall deduct 4 demerit points from his record. A
person may attend a course of instruction in the responsibilities of hunters
only once in 60 months for the purpose of reducing his demerit points.

2. If a person accumulates 12 or more
demerit points [or commits a wildlife violation
punishable as a gross misdemeanor] before completing a course of
instruction pursuant to subsection 1, the division shall suspend or revoke any hunting, fishing or trapping license
, [or] permit or privilege issued to him pursuant to this
Title.

3. Not later than [30]60 days after the division determines that a
person [accumulates]has accumulated 12 demerit
points, the division shall notify the person by certified mail that his
privileges [are subject to suspension.]will be suspended or revoked.
Except as otherwise provided in subsection 4, the division shall suspend [the license or permit]or revoke those privileges
30 days after it mails the notice.

4. Any person who receives the notice
required by subsection 3 may submit to the division a written request for a
hearing before the commission [no] not later than 30 days
after the receipt of the notice.

[no]not later than 30 days
after the receipt of the notice. If a written request for a hearing is received
by the division:

(a) The suspension or revocation of the license , permit orprivilege is stayed until
a determination is made by the commission after the hearing.

(b) The hearing must be held within 60 days
after the request is received.

5. The periods of suspension or revocation imposed
pursuant to this section must run concurrently. No license , [or]
permit or privilege may
be suspended or revoked pursuant
to this section for more than 3 years.

6. If the division suspends or revokes a license , [or]
permit or privilege pursuant
to this section, the period of suspension or revocation begins 30 days after
notification pursuant to subsection 3 or a determination is made by the
commission pursuant to subsection 4. After a persons license , [or]
permit or privilege is
suspended [,] or revoked pursuant to this section, all
demerit points accumulated by that person must be canceled.

Sec. 4. NRS 501.1817 is
hereby amended to read as follows:

501.1817 Any person whose license , [or]permit or privilege
has been suspended or revoked
by the division pursuant to NRS 501.1816 is entitled to judicial review of the
decision in the manner provided by chapter 233B of NRS.

Sec. 5. NRS 501.388 is
hereby amended to read as follows:

501.388 1. The
commission may [:], in addition to any suspension,
revocation or other penalty imposed pursuant to any other provision of this
Title:

(a) Revoke any license of any person who is
convicted of a violation of NRS 503.050, [in
addition to the penalty imposed,] and may refuse to issue any new
license to the convicted person for any period not to exceed 5 years after the
date of the conviction; and

(b) Revoke any license of any person who is
convicted of unlawfully killing or possessing a bighorn sheep, mountain goat,
elk, deer, pronghorn antelope, mountain lion or black bear without a valid tag,
[in addition to the penalty imposed,]
and may:

(1) Refuse to issue any new license to
the convicted person for any period not to exceed 3 years; and

(2) Revoke that persons privilege to
apply for any big game tag for a period not to exceed 10 years.

2. The court in which the conviction is
had shall require the immediate surrender of all such licenses and shall
forward them to the commission.

Sec. 6. NRS 502.330 is
hereby amended to read as follows:

502.330 1. No hunting
license may be obtained by any person born after January 1, 1960, unless he
presents to the division, or one of its authorized licensing agents : [,
either:]

(a) A certificate of successful completion of a
course of instruction in the responsibilities of hunters as provided by NRS
502.340; [or]

(b) An equivalent certificate of completion of a
course in the responsibilities of hunters provided by [any]a state or an agency
of a Canadian province for the management of wildlife [.]; or

(c) A
hunting license issued to him in a previous year by the division, a state or an
agency of a Canadian province, which bears a number or other unique mark evidencing successful completion of a course of
instruction in the responsibilities of hunters.

unique mark
evidencing successful completion of a course of instruction in the
responsibilities of hunters.

2. Any person who has been convicted of
violating NRS 503.165 or 503.175 may not obtain a hunting license until he has
successfully completed a course in the responsibilities of hunters conducted
pursuant to NRS 502.340.

Sec. 7. The provisions of
subsection 1 of NRS 354.599 do not apply to any additional expenses of a local
government that are related to the provisions of this act.

Sec. 8. This act becomes
effective upon passage and approval.

________

CHAPTER 289, AB 61

Assembly Bill No.
61Committee on Government Affairs

CHAPTER 289

AN ACT relating to state employees; extending
the period of time that the department must maintain recordings of oral
examinations in certain circumstances; authorizing the director of the
department of personnel to allow a greater percentage of employees from the
same department to serve on a panel which conducts an oral examination in
certain circumstances; and providing other matters properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 284.210 is
hereby amended to read as follows:

284.210 1. All competitive
examinations for positions in the classified service must:

(a) Relate to those matters which fairly test
the capacity and fitness of the persons examined to [discharge
efficiently]perform
in an efficient manner the duties of the class in which
employment is sought.

(b) Be open to all applicants who meet the
reasonable standards or requirements fixed by the director with regard to
experience, character, age, education, physical condition and any other factors
relating to the ability of the applicants to perform the duties of the position
with reasonable efficiency.

2. An examination may consist of:

(a) An evaluation of the applicants training
and experience;

(b) A written examination;

(c) An oral examination;

(d) An evaluation of the applicants
performance, such as the ability to operate successfully certain equipment; or

(e) Any combination of paragraphs (a) to (d),
inclusive.

3. An examination may be conducted by
using a center for assessment as defined by regulations adopted by the
director. An employee of the department for which an examination is being held
may not serve on the panel or score the examination.

(a) [Conducted] Except as otherwise provided in
subsection 5, conducted by a panel of which no more than one-third
of the members are employed by the department in which a vacancy exists for the
position for which the examination is given.

(b) Recorded and maintained by the department
for [at least 30 days] :

(1) Not
less than 2 years after the date of the examination ; or

(2) Until
the final disposition of a charge of discrimination,

whichever is
longer, and must be available to [interested
persons.] an
affected person upon request.

5. Employees
of the department in which a vacancy exists may comprise more than one-third of
the members of the panel if:

(a) A
member who is not such an employee is unable to serve on the panel because of
illness or an emergency;

(b) The
department has more than 1,000 employees; and

(c) The
department has two or more divisions that administer separate and diverse
programs and the employees of the department on the panel are not employed by
the same division.

Sec. 2. This act becomes
effective on July 1, 1997.

________

CHAPTER 290, AB 115

Assembly Bill No.
115Committee on Labor and Management

CHAPTER 290

AN ACT relating to the division of
industrial relations of the department of business and industry; repealing the
requirement that the division must have a seal to authenticate its proceedings
and orders; and providing other matters properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

AN ACT relating to crimes; prohibiting the
release of a person on parole or probation if he was convicted of committing a
certain offense related to defrauding a person who is 65 years of age or older
until the convicted person has paid a certain amount of restitution to the
victim of the offense; and providing other matters properly relating thereto.

[Approved
July 5, 1997]

THE
PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS
FOLLOWS:

Section 1. Chapter 213 of NRS
is hereby amended by adding thereto a new section to read as follows:

1. Except
as otherwise provided in subsection 2, the board shall not release on parole a
prisoner whose conduct during the commission of the crime for which he was
imprisoned satisfies the requirements for imposing an additional term of
imprisonment pursuant to paragraph (f) or (g) of subsection 1 of NRS 193.167 or
subsection 2 of NRS 193.167, until the prisoner has paid to the victim of the
offense at least 80 percent of the amount of restitution set by a court
pursuant to NRS 176.033.

2. The
board shall not refuse to release a prisoner on parole as provided in
subsection 1 unless the board determines that the prisoner has willfully failed
to make restitution to the victim of the crime and the prisoner has the ability
to make restitution.

Sec. 2. NRS 213.107 is
hereby amended to read as follows:

213.107 As
used in NRS 213.107 to 213.157, inclusive, and section 1 of this act, unless the context
otherwise requires:

1. Board means the state board of
parole commissioners.

2. Chief means the chief parole and
probation officer.

3. Division means the division of
parole and probation of the department of motor vehicles and public safety.

4. Residential confinement means the
confinement of a person convicted of a crime to his place of residence under
the terms and conditions established by the board.

5. Sex offender means any person who
has been or is convicted of a sexual offense.

(c) An act of murder in the first or second
degree, kidnaping in the first or second degree, false imprisonment, burglary
or invasion of the home if the act is determined to be
sexually motivated at a hearing conducted pursuant to NRS 175.547.

the act is determined to be sexually motivated at a hearing
conducted pursuant to NRS 175.547.

7. Standards means the objective
standards for granting or revoking parole or probation which are adopted by the
board or the chief.

Sec. 3. Chapter 176 of NRS
is hereby amended by adding thereto a new section to read as follows:

1. Except
as otherwise provided in subsection 2, the court shall not grant probation to a
person whose conduct during the commission of the crime for which he was
convicted satisfies the requirements for imposing an additional term of
imprisonment pursuant to paragraph (f) or (g) of subsection 1 of NRS 193.167 or
subsection 2 of NRS 193.167, until the convicted person has paid to the victim
of the offense at least 80 percent of the amount of restitution set by the
court pursuant to NRS 176.033.

2. The
court shall not deny probation to a person as provided in subsection 1 unless
the court determines that the person has willfully failed to make restitution
to the victim of the crime and the person has the ability to make restitution.

Sec. 4. The amendatory
provisions of this act do not apply to offenses that are committed before
October 1, 1997.

Sec. 5. The provisions of
subsection 1 of NRS 354.599 do not apply to any additional expenses of a local
government that are related to the provisions of this act.

AN ACT relating to state lands; revising
provisions governing the duties and activities of the state land use planning
agency and the land use planning advisory council; and providing other matters
properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 321.720 is
hereby amended to read as follows:

321.720 The administrator shall develop
and make available to cities and counties information useful to land use
planning, including:

1. Preparation and continuing revision of
a statewide inventory of the land and natural resources of the state;

2. Compilation and continuing revision of
data, on a statewide basis, related to population densities and trends,
economic characteristics and projections, environmental conditions and trends,
and directions and extent of urban and rural growth;

3. Projections of the nature and quantity
of land needed and suitable for:

(b) Conservation and preservation of natural
resources, agriculture, mineral development [,]
and forestry;

(c) Industry and commerce, including the
development, generation and transmission of energy;

(d) Transportation;

(e) Urban development, including the revitalization
of existing communities, the development of new towns, and the economic
diversification of existing communities which possess a narrow economic base;

(f) Rural development, taking into consideration
future demands for and limitations upon products of the land; and

(g) Health, educational, and other state and
local governmental services;

4. Preparation and continuing revision of
an inventory of environmental, geological and physical conditions, including
types of soil, which influence the desirability of various uses of land;

5. Preparation and continuing revision of
an inventory of state, local government and private needs and priorities
concerning the acquisition and use of federal lands within the state;

6. Preparation and continuing revision of
an inventory of public and private institutional and financial resources
available for land use planning and management within the state and of state
and local programs and activities which have a land use impact of more than
local concern;

7. Provision, where appropriate, of
technical assistance and training programs for state and local agency personnel
concerned with the development and implementation of state and local land use
programs;

8. Coordination and exchange of land use
planning information and data among state agencies and local governments, with
the Federal Government, among the several states and interstate agencies, and
with members of the public, including conducting of public hearings,
preparation of reports [,] and
soliciting of comments on reports concerning information useful to land use
planning;

9. Coordination of planning for state and
local acquisition and use of federal lands within the state, except that in the
case of a plan which utilizes both federal and private lands the governing body
of the area where private lands are to be utilized has final authority to
approve the proposal; [and]

10. Provision of assistance to counties to develop programs to
increase the responsibility of local governments for the management of lands in
the State of Nevada that are under federal management; and

11. Consideration
of, and consultation with, the relevant states on the interstate aspects of
land use issues of more than local concern.

Sec. 2. NRS 321.7355 is
hereby amended to read as follows:

321.7355 1. The state land
use planning agency shall prepare, in cooperation with appropriate state
agencies and local governments throughout the state, plans or policy statements
concerning the acquisition and use of lands in the State of Nevada [which]that are under
federal management.

2. The state land use planning agency
shall, in preparing the plans and policy statements, identify lands which are
suitable for acquisition for:

(b) The expansion of the property tax base,
including the potential for an increase in revenue by the lease and sale of
those lands; or

(c) Accommodating increases in the population of
this state.

The plans or policy statements must not include matters
concerning zoning or the division of land and must be consistent with local
plans and regulations concerning the use of private property.

3. The state land use planning agency
shall encourage public comment upon the various matters treated in a proposed
plan or policy statement throughout its preparation and shall submit its work
on a plan or statement of policy periodically for review and comment by the
land use planning advisory council, the advisory board on natural resources and
any committees of the legislature or subcommittees of the legislative
commission [which]that deal with matters
concerning thepublic lands.

4. Whenever the state land use planning agency prepares plans
or policy statements pursuant to subsection 1 and submits those plans or policy
statements to the governor, legislature or an agency of the Federal Government,
the state land use planning agency shall include with each plan or policy
statement the comments and recommendations of:

(a) The
land use planning advisory council;

(b) The
advisory board on natural resources; and

(c) Any
committees of the legislature or subcommittees of the legislative commission
that deal with matters concerning the public lands.

5. A
plan or statement of policy must be approved by the governing bodies of the
county and cities affected by it, and by the governor, before it is put into
effect.

Sec. 3. NRS 321.750 is
hereby amended to read as follows:

321.750 The land use planning advisory
council shall [advise] :

1. Advise
the administrator on the development and distribution to cities and counties of
information useful to land use planning.

2. Advise
the state land use planning agency regarding the development of plans and
policy statements pursuant to subsection 1 of NRS 321.7355.

AN ACT relating to mobile home parks;
requiring the refund with interest of certain deposits held by landlords of mobile
home parks; and providing other matters properly relating thereto.

[Approved July 5, 1997]

Whereas, Section
12 of chapter 689, Statutes of Nevada 1991, at page 2273, which amended NRS
118B.060, required any deposit collected by a landlord of a mobile home park as
a sum to compensate for a tenant default to be refunded with interest not more
than 5 years after the landlord received the deposit; and

Whereas, In
a letter to the Administrator of the Manufactured Housing Division dated
September 20, 1991, the Office of the Attorney General opined that section 12
of chapter 689, Statutes of Nevada 1991, at page 2273, did not apply to any
such deposit received by a landlord before the effective date of that section
which was on October 1, 1991; and

Whereas, The
members of the 69th session of the Nevada Legislature wish to clarify that
section 12 of chapter 689, Statutes of Nevada 1991, at page 2273, was intended
to apply to all such deposits, including those received before October 1, 1991;
now, therefore,

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. 1. Any
deposit that was received by a landlord of a mobile home park before October 1,
1991, as a sum to compensate for a tenant default which is still held by the
landlord on the effective date of this act must be refunded to the tenant
pursuant to subsection 4 of NRS 118B.060 within 30 days after the effective
date of this act.

2. Except as otherwise provided in this
subsection, the refunded amount must include interest calculated pursuant to
subsection 4 of NRS 118B.060 for the entire period during which the deposit was
held by the landlord. Interest paid pursuant to this section need not be
calculated for or applied to the portion of the period during which the deposit
was held, if any, before October 1, 1991.

Sec. 2. This act becomes
effective upon passage and approval.

________

κ1997
Statutes of Nevada, Page 1035κ

CHAPTER 294, SB 330

Senate Bill No.
330Senator Neal

CHAPTER 294

AN ACT relating to civil actions;
providing that community action agencies and their direct successors in
interest are political subdivisions of this state for purposes of determining
civil liability; and providing other matters properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 41.0305is hereby amended to read as follows:

41.0305 As
used in NRS 41.031 to 41.039, inclusive, the term political subdivision
includes an organization that was
officially designated as a community action agency pursuant to 42 U.S.C. § 2790
before that section was repealed and is included in the definition of an
eligible entity pursuant to 42 U.S.C. § 9902, the Nevada rural
housing authority, an airport authority created by special act of the
legislature, a regional transportation commission and a fire protection
district, irrigation district, school district and other special district [which]that performs a governmental function, even
though it does not exercise general governmental powers.

Sec. 2. The amendatory
provisions of this act apply to a civil action filed with a court on or after
October 1, 1997.

________

CHAPTER 295, SB 382

Senate Bill No.
382Committee on Commerce and Labor

CHAPTER 295

AN ACT relating to professions; specifying
the duties of the state board of professional engineers and land surveyors;
requiring the board to adopt regulations governing the election of its
officers; revising the provisions governing the administration of the
examinations for licensure as a professional engineer or professional land
surveyor; revising the provisions governing the licensing of land surveyors who
are licensed in a foreign country; eliminating the authority of the board to
certify a land surveyor intern who is certified in another state or territory
of the United States; providing a penalty; and providing other matters properly
relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.NRS 623.330
is hereby amended to read as follows:

623.330 1. The
following persons are exempt from the provisions of this chapter:

(a) A person engaging in architectural work as
an employee of a registered architect or residential designer, if the work does
not include responsible charge of design or supervision, or a consultant
retained by a registered architect or residential designer.

(b) A person hired by the Federal Government to
practice architecture on federal land.

(c) A professional engineer [registered]licensed pursuant to the provisions of
chapter 625 of NRS who designs buildings as permitted by chapter 625 of NRS.

(d) A contractor licensed pursuant to the
provisions of chapter 624 of NRS who provides his own drawings for his own
construction activities.

(e) Any person who prepares plans, drawings or
specifications for:

(1) Buildings for his own private
residential use; or

(2) Farm or ranch buildings used as such.

(f) A person engaging in work related to
interior design as an employee of a registered interior designer, if the work
does not include responsible charge of interior design or supervision, or a
consultant retained by a registered interior designer.

(g) Any person who prepares drawings of the
layout of materials or furnishings used in interior design or provides
assistance in the selection of materials or furnishings used in interior
design, including, without limitation:

(1) Decorative accessories;

(2) Wallpaper, wallcoverings or paint;

(3) Linoleum, tile, carpeting or floor
coverings;

(4) Draperies, blinds or window
coverings;

(5) Lighting which is not part of a
structure;

(6) Plumbing fixtures which are not a
part of a structure; and

(7) Furniture or equipment,

if the preparation or implementation of those drawings or
the installation of those materials or furnishings is not regulated by any
building code or other law, ordinance, rule or regulation governing the
alteration or construction of a structure.

2. Any person exempted by the provisions
of this section is not thereby absolved from any civil or criminal liability
that might otherwise accrue.

3. The exemptions provided by this
section do not entitle any person who does not hold a certificate of
registration to hold himself out to the public or advertise himself as an
architect, registered interior designer or residential designer.

Sec. 2. NRS 623.350 is
hereby amended to read as follows:

623.350 1. This
chapter does not prevent firms, partnerships, corporations or associations of
architects, registered interior designers, professional engineers and landscape
architects, or any combination thereof, from practicing as such, if each
director, stockholder and officer of the corporation and each partner or
associate of the firm, partnership or association is registered or licensed pursuant to
the applicable provisions of this chapter, chapter 623A or chapter 625 of NRS.

2. Every office or place of business of
any firm, partnership, corporation or association engaged in the practice of
architecture must have an architect who is a resident of this state and holds a
certificate of registration issued pursuant to this chapter regularly working
in the office or place of business and directly responsible for the
administration of the architectural work conducted in the office or place of
business.

3. The provisions of subsection 2 do not
apply to firms, partnerships, corporations or associations engaged in the
practice of architecture at offices established for construction
administration.

Sec. 3. NRS 623A.070 is
hereby amended to read as follows:

623A.070 1. This
chapter does not apply to:

(a) Owners of property who make plans,
specifications or drawings for their own property.

(b) Any person engaged in the practice of
architecture who is registered pursuant to chapter 623 of NRS.

(c) A contractor licensed pursuant to chapter
624 of NRS who provides his own drawings for his own construction activities.

(d) Any person who is [registered]licensed as a
civil engineer pursuant to chapter 625 of NRS.

(e) Any person who designs, manufactures or
sells irrigation equipment and provides instructions pertaining to the
mechanical erection and installation of the equipment but does not install the
equipment.

2. Any person exempted by the provisions
of this section is not thereby absolved from any civil or criminal liability
that might otherwise accrue.

3. The exemptions provided by this
section do not entitle any person who does not hold a certificate to practice
landscape architecture to hold himself out to the public or advertise himself
as a landscape architect.

Sec. 4. NRS 624.020 is
hereby amended to read as follows:

624.020 1. For
the purpose of this chapter ,
contractor is synonymous with builder.

2. Within the meaning of this chapter, a
contractor is any person, except a registered architect or a [registered]licensed professional engineer, acting
solely in his professional capacity, who in any capacity other than as the
employee of another with wages as the sole compensation, undertakes to, or
offers to undertake to, or purports to have the capacity to undertake to, or
submits a bid to, or does himself or by or through others, construct, alter,
repair, add to, subtract from, improve, move, wreck or demolish any building,
highway, road, railroad, excavation or other structure, project, development or
improvement, or to do any part thereof, including the erection of scaffolding
or other structures or works in connection therewith. Evidence of the securing
of any permit from a governmental agency or the employment of any person on a
construction project [shall]must be accepted by
the board or any court of this state as prima facie evidence that the person
securing [such]that permit or
employing any person on a construction project is acting in the capacity of a
contractor [under]pursuant to the provisions of
this chapter.

3. A contractor within the meaning of
this chapter includes subcontractor or specialty contractor, but does not
include anyone who merely furnishes materials or supplies without fabricating
them into, or consuming them in the performance of, the work of a contractor.

4. A contractor within the meaning of
this chapter includes a construction manager who performs management and
counseling services on a construction project for a professional fee.

Sec. 5. Chapter 625 of NRS
is hereby amended by adding thereto the provisions set forth as sections 6 to
11, inclusive, of this act.

Sec. 6. Intern means an engineer intern or a
land surveyor intern.

Sec. 7. Licensee means a professional engineer or professional
land surveyor licensed pursuant to the provisions of this chapter.

Sec. 8. The board shall:

1. Issue
licenses to qualified and competent persons as professional engineers and
professional land surveyors and certify qualified and competent persons as
engineer interns and land surveyor interns.

2. Carry
out the provisions of this chapter.

3. Upon
request, provide information concerning the regulation of the practice of
professional engineering and land surveying.

Sec. 9. 1.The board shall hold examinations of applicants for licenses
at least once each year in localities determined by the number of applications
received.

2.The examinations must be written and
administered in English.

Sec. 10. 1.A person who:

(a)Is 21 years of age or older; and

(b)Is a citizen of the United States or is
lawfully entitled to remain and work in the United States,

may apply to
the board, in accordance with the provisions of this chapter and any
regulations adopted by the board, for licensure as a professional engineer.

2.An applicant for licensure as a
professional engineer must:

(a)Be of good character and reputation; and

(b) Pass
the examination on the:

(1) Fundamentals
of engineering or receive a waiver of that requirement; and

(2) Principles
and practices of engineering,

pursuant to
section 11 of this act.

3. An
applicant for licensure as a professional engineer may not take the examination
on the principles and practices of engineering, unless he:

(a) Is
a graduate of an engineering curriculum of 4 years or more that is approved by
the board and has a record of 4 years or more of active experience in
engineering that is satisfactory to the board and indicates that he is
competent to be placed in responsible charge of engineering work; or

(b)Has a record of 10 years or more of
active experience in engineering work that is satisfactory to the board and
indicates that he is competent to be placed in responsible charge of
engineering work.

4.For the purposes of determining whether
an applicant for licensure as a professional engineer has an adequate record of
active experience pursuant to paragraph (a) of subsection 3:

(a) Graduation
from a college or university in a field other than engineering is equivalent to
2 years of active experience.

(b) Two
of the 4 years of active experience must have been completed by working under
the direct supervision of a person who is a professional engineer, unless that
requirement is waived by the board.

(c) The
execution, as a contractor, of work designed by a professional engineer or the
supervision of the construction of that work as a foreman or superintendent, is
not equivalent to active experience in engineering.

5. For
the purposes of determining whether an applicant for licensure as a
professional engineer has an adequate record of active experience pursuant to paragraph
(b) of subsection 3:

(a)Satisfactory completion of 1 year of
courses in engineering that are approved by the board, by a person who has not
graduated from an engineering curriculum, is equivalent to 1 year of active
experience in engineering.

(b)Graduation from a college or university
in a field other than engineering is equivalent to 2 years of active
experience.

(c) Two
of the 10 years of active experience must have been completed by working under
the direct supervision of a person who is a professional engineer unless that
requirement is waived by the board.

(d) The
execution, as a contractor, of work designed by a professional engineer or the
supervision of the construction of that work as a foreman or superintendent, is
not equivalent to active experience in engineering.

(e) Not
more than 4 years of active experience may be satisfied by the completion of
educational course work.

6. A
person who is not working in the field of engineering when he applies for
licensure is eligible for licensure as a professional engineer if he complies
with the requirements for licensure prescribed in this chapter.

Sec. 11. 1.The examination for licensure as a professional engineer
must consist of:

(a) An
8-hour examination on the fundamentals of engineering that must cover the
subject matter of a general education or training in engineering. If the
applicant for licensure as a professional engineer has 15 years or more of
experience in engineering, the examination on the fundamentals of engineering may
be waived. For the purposes of determining the years of experience of an
applicant for licensure as a professional engineer pursuant to this paragraph,
the board shall consider graduation from an engineering curriculum that is
approved by the board to be equivalent to 4 years of experience.

(b)An 8-hour examination on the principles
and practices of engineering that must cover the discipline of engineering in
which the applicant is applying for licensure.

2.An applicant for licensure as a
professional engineer must pass the examination on the fundamentals of
engineering or receive a waiver of that requirement before he may take the
examination on the principles and practices of engineering.

3.When determining the content of the
examinations on the fundamentals of engineering and the principles and
practices of engineering, the board shall consider the recognized disciplines
of engineering and may conform the examination to the particular qualifications
of the applicant.

4. The
board may require additional examinations for licensure in specialized areas of
practice within one or more recognized disciplines of engineering.

5. The
board may administer or authorize an accredited college or university that
offers a program in engineering approved by the board to administer the
examination on the fundamentals of engineering to persons who are not
applicants for licensure as professional engineers in this state.

6. The
board may prescribe or limit the use of notes, texts and reference materials by
applicants who are taking the examinations.

7. The
board may require the examinations or any portion of the examinations set forth
in this section to be completed:

(a) In
writing, with a pen or pencil of a type that has been approved by the board;

(b) With
a computer that has been provided or approved by the board; or

(c) Orally,
in the manner prescribed by the board.

Sec. 12. NRS 625.005 is
hereby amended to read as follows:

625.005 The purpose of this chapter is to
safeguard life, health and property and to promote the public welfare by
providing for the [registration]licensure of
qualified and competent professional engineers and professional land surveyors.

Sec. 13. NRS 625.008 is
hereby amended to read as follows:

625.008 As used in this chapter,unless
the context otherwise requires, the words and terms defined in NRS 625.010 to
625.090, inclusive, and sections 6
and 7 of this act have the meanings ascribed to them in those
sections.

Sec. 14. NRS 625.030 is
hereby amended to read as follows:

625.030 [Engineering]Engineer intern
means [an applicant for registration as a
professional engineer.]a person who has satisfied the requirements of NRS 625.275
and subsection 1 of NRS 625.390.

Sec. 15. NRS 625.035 is
hereby amended to read as follows:

625.035 [Land-surveying]Land surveyor internmeans [an applicant for registration as a
land surveyor.]a
person who has satisfied the requirements of NRS 625.275 and subsection 1 of
NRS 625.390.

Sec. 16. NRS 625.060 is
hereby amended to read as follows:

625.060 Professional engineer means a
person who by reason of his professional education and practical experience is
granted a [certificate of registration]license by the
board to practice professional engineering.

Sec. 17. NRS 625.070 is
hereby amended to read as follows:

625.070 Professional land surveyor
means a person who by reason of his professional education and practical
experience is granted a [certificate of
registration]license
by the board to practice land surveying in this state.

Sec. 18. NRS 625.100 is
hereby amended to read as follows:

625.100 1. The governor
shall appoint seven persons, six of whom must be engaged in the practice or
teaching of professional engineering in any of its disciplines except military
engineering, and one of whom must be engaged in the practice or teaching of
land surveying. The members must be citizens of the United States and residents
of this state, and [they]constitute
the state board of professional engineers and land surveyors.

2. All appointments made must be from the
current roster of [registered]professional
engineers and professional land
surveyors as issued by the board and on file in the office of the secretary of
state. Insofar as practicable, membership on the board must be distributed
proportionately among the recognized disciplines of the
profession.

among the recognized disciplines of the profession. One of
the members who is a professional land
surveyor must not be [registered]licensed as a professional
engineer.

3. Within 30 days after his appointment,
a member shall take and subscribe to the oath of office as prescribed by the
laws of Nevada and shall file the oath with the secretary of state.

Sec. 19. NRS 625.110 is
hereby amended to read as follows:

625.110 1. The board shall
elect [one of its members as chairman and one of
its members as vice chairman, each of whom holds office for 2 years and until a
successor is elected and qualified.]officers from its members and, by regulation, establish the:

(a) Offices
to which members may be elected;

(b) Title
and term for each office; and

(c) Procedure
for electing members to each office.

2. At any meeting, four members
constitute a quorum.

3. Each member is entitled to receive:

(a) A salary of not more than $80 per day, as
fixed by the board, while engaged in the business of the board; and

(b) A per diem allowance and travel expenses at
a rate fixed by the board, while engaged in the business of the board. The rate
must not exceed the rate provided for state officers and employees generally.

4. While engaged in the business of the
board, each employee of the board is entitled to receive a per diem allowance
and travel expenses at a rate fixed by the board. The rate must not exceed the
rate provided for state officers and employees generally.

5. [Expenses
of the board and expenses and]The salaries of members of the board and
employees of the board must be paid from the fees received by the board
pursuant to the provisions of this chapter, and no part of those salaries [and expenses] may be paid out of the
state general fund.

6. The board shall appoint an executive
director who serves at the pleasure of the board and is entitled to receive
such compensation as may be fixed by the board.

Sec. 20. NRS 625.140 is
hereby amended to read as follows:

625.140 The board may adopt all bylaws
and regulations, including the adoption [and
promulgation] of a code of conduct which is binding on any person
[registered]licensed in accordance
with the provisions of this chapter, not inconsistent with the constitution and
laws of this state, which are necessary for the proper performance of the
duties of the board, the regulation of the proceedings before it and the
maintenance of a high standard of integrity and dignity in the profession.

Sec. 21. NRS 625.150 is
hereby amended to read as follows:

625.150 1. The board shall
deposit in banks and savings and loan associations in the State of Nevada all
money collected by it.

2. Except as otherwise provided in
subsection 6, all money collected by the board must be used to meet the
expenses of conducting examinations,
[the expenses of issuance of certificates and the
expenses of]issuing
licenses and conducting the office of the board.

3. The expenses [,]of the board,
including the per diem allowances and travel expenses of the members and
employees of the board while engaged in the business of
the board and the expenses of conducting examinations, must be paid from the
current receipts.

in the business of the board and the expenses of conducting
examinations, must be paid from the current receipts. No portion thereof may be
paid from the state treasury.

4. Any balance remaining in excess of the
expenses incurred may be retained by the board and used in defraying the future
expenses thereof.

5. The board may delegate to a hearing
officer or panel its authority to take any disciplinary action pursuant to this
chapter, impose and collect fines and penalties therefor and deposit the money
therefrom in banks or savings and loan associations in this state.

6. If a hearing officer or panel is not
authorized to take disciplinary action pursuant to subsection 5 and the board
deposits the money collected from the imposition of fines with the state
treasurer for credit to the state general fund, it may present a claim to the
state board of examiners for recommendation to the interim finance committee if
money is needed to pay attorneys fees or the costs of an investigation, or
both.

7. The board shall consider and take
appropriate action concerning a written notification received by the board
pursuant to section 2 or 3 of [this act.]Assembly Bill No. 328 of this
session.

Sec. 22. NRS 625.170 is
hereby amended to read as follows:

625.170 1. The executive director of the
board shall ,[prepare] once each year [,] or at intervals [as] established by the board, prepare a roster [showing the names, last known addresses and
disciplines of engineering of all registered professional engineers and the
names and last known addresses of all land surveyors, engineering interns and
land-surveying interns. Copies of the]that shows, for each:

(a) Professional
engineer, his name, the city in which he lives, his license number and the
discipline of engineering in which he specializes.

(b) Professional
land surveyor, his name, the city in which he lives and his license number.

(c) Engineer
intern or land surveyor intern, his name and license number.

2. The
roster must be:

[1. Mailed
to each person so registered.

2.](a) Made available to each
licenseein a
manner prescribed by the board.

(b) Placed
on file with the secretary of state and county and city clerks.

[3.](c) Distributed or
sold to the public.

Sec. 23. NRS 625.175 is
hereby amended to read as follows:

625.175 The board may by regulation
define the scope of each discipline of professional engineering for which [registration]licensure is required pursuant to this
chapter.

Sec. 24. NRS 625.261 is
hereby amended to read as follows:

625.261 1. Except as
otherwise provided in this section:

(a) A firm, partnership, corporation or other
person engaged in or offering to engage in the practice of engineering or land surveying in this state
shall employ full time at least one professional engineer or professional land surveyor , respectively, at each
place of business where [land-surveying]such work is or
will be performed; and

(b) All engineering or land-surveying work done at a
place of business must be performed under a professional engineer or professional land surveyor , respectively, who has
been placed in responsible charge of the work and who is employed full time at that
particular place of business.

2. If the only professional engineer or professional land
surveyor employed full time at a place of business where engineering or land-surveying work is
performed ceases to be employed at that place of business, during the 30 days
next following his departure:

(a) The place of business is not required to
employ full time a professional engineer
or professional land surveyor; and

(b) The professional engineer or professional land surveyor placed
in responsible charge of engineering
or land-surveying work performed at the place of business is not
required to be employed full time at that place of business.

3. [This
section does]Except
as otherwise provided in subsection 4:

(a) A
firm, partnership, corporation or other person who performs or offers to
perform engineering services in a certain discipline at a particular place of
business shall employ full time at that place of business a professional
engineer licensed in that discipline.

(b) Each
person who holds himself out as practicing a certain discipline of engineering
must be licensed in that discipline or employ full time a professional engineer
licensed in that discipline.

4. The
provisions of this section do not apply to [firms, partnerships, corporations or other persons
practicing]a
firm, partnership, corporation or other person who:

(a) Practices
professionalengineering
for his benefit and does not engage in the practice of professional engineering
or offer professional engineering services to other persons; or

(b) Is
engaged in the practice of professional engineering or land
surveying in offices established for limited or temporary purposes, including
offices established for the convenience of field survey crews [,] or offices established for inspecting
construction.

Sec. 25. NRS 625.270 is
hereby amended to read as follows:

625.270 1. A person who:

(a) Is 21 years of age or older; and

(b) Is a citizen of the United States or is
lawfully entitled to remain and work in the United States,

may apply to the board , [for
examination,] in accordance with the provisions of this chapter
and any regulations adopted by the board, for [registration]licensure as a
professional land surveyor.

2. [A
person is not eligible for registration as a professional land surveyor if he
is not of good character and reputation.

3.]An
applicant for [registration]licensure as a
professional land surveyor must:

(1) Fundamentals
of land surveying or receive a waiver of that requirement; and

(2) Principles
and practices of land surveying,

pursuant to NRS
625.280.

3. An
applicant for licensure as a professional land surveyor may not take the examination
on the principles and practices of land surveying, unless he:

(a) Is
a graduate of a land-surveying curriculum of 4 years or more that is approved
by the board and [have]has a record of [an additional] 4 years or more of active
experience in land surveying that is satisfactory to the board and indicates
that he is competent to be placed in responsible charge of land-surveying work;
or

(b) [Have]Has a record of
10 years or more of active experience in land-surveying work that is
satisfactory to the board and indicates that he is competent to be placed in
responsible charge of land-surveying work.

4. For the purposes of determining whether an applicant for
licensure as a professional land surveyor has an adequate record of active
experience pursuant to paragraph (a) of subsection 3:

(a) Graduation
from a college or university in a field other than land surveying is equivalent
to 2 years of active experience.

(b) Two
of the 4 years of active experience must have been completed by working under the
direct supervision of a person who is a professional land surveyor, unless that
requirement is waived by the board.

(c) The
execution, as a contractor, of work designed by a professional land surveyor or
the supervision of the construction of that work, as a foreman or
superintendent, is not equivalent to active experience in land surveying.

5. For
the purposes of [evaluating an applicants
qualifications for registration, the board shall consider:]determining whether an applicant for
licensure as a professional land surveyor has an adequate record of active
experience pursuant to paragraph (b) of subsection 3:

(a) Satisfactory completion of 1 year of courses
in land surveying that are approved by the board [to
be], by a person
who has not graduated from a land-surveying curriculum, is
equivalent to 1 year of active experience in land surveying . [;
and]

(b) Graduation from a college or university [curriculum] in a field other than land
surveying [to be]is equivalent to 2
years of active experience.

[5. An
applicant may not receive credit for]

(c) Two
of the 10 years of active experience must have been completed by working under
the direct supervision of a person who is a professional land surveyor unless
that requirement is waived by the board.

(d) The
execution, as a contractor, of work designed by a professional land surveyor or
the supervision of the construction of that work as a foreman or
superintendent, is not equivalent to active experience in land surveying.

(e) Not
more than 4 years of active experience [because
of educational qualifications described in subsection 4.]may be satisfied by the completion of
educational course work.

6. A
person who is not working in the field of land surveying when he applies for
licensure is eligible for licensure as a professional land surveyor if he
complies with the requirements for licensure prescribed in this chapter.

Sec. 26. NRS
625.275 is hereby amended to read as follows:

625.275 [Except
as provided in NRS 625.305, to]

1. To
be eligible for certification as a [land-surveying]land surveyor
intern, an applicant must:

[1.](a) Be a
graduate of or in his final year of an [approved]
land-surveying or engineering curriculum of 4 years [of
more,]or more
that has been approved by the board [as
satisfactory,] and have [successfully
passed part 1 of a written examination designated by the board; or

2.]passed the examination on the
fundamentals of land surveying provided for in NRS 625.280; or

(b) Have
had 4 years or more of experience in land-surveying work that is satisfactory to the board [,] and have [successfully
passed part 1 of]passed
the examination on
the fundamentals of land surveying provided for in NRS 625.280.

2. To
be eligible for certification as an engineer intern, an applicant must:

(a) Be
a graduate of or in his final year of an engineering curriculum of 4 years or
more that has been approved by the board and have passed the examination on the
fundamentals of engineering provided for in section 11 of this act; or

(b) Have
had 4 years or more of experience in engineering work that is satisfactory to
the board and have passed the examination on the fundamentals of engineering
provided for in section 11 of this act.

Sec. 27. NRS 625.280 is
hereby amended to read as follows:

625.280 1. The [written] examination for [registration]licensure as a professional land surveyor
must consist of [a 2-day test, four 4-hour
periods, divided into two parts:

(a) Part 1 must be an
8-hour written]:

(a) An
8-hour examination on the fundamentals of land surveying [and]that must cover the subject matter of a
general land-surveying education or training. If the applicant [is a graduate of a curriculum of land surveying that
is approved by the board or has 8]for licensure as a professional land surveyor has 15 years
or more of experience in land surveying, [part 1]the examination on the
fundamentals of land surveying may be waived. For the purposes of determining the
years of experience of an applicant for licensure as a professional land
surveyor pursuant to this paragraph, the board shall consider graduation from a
land-surveying curriculum that is approved by the board to be equivalent to 4
years of experience.

(b) [Part 2 must
be an 8-hour written]An 8-hour examination on the principles
and [practice]practices of land
surveying.

2. An applicant for licensure as a professional land surveyor must
pass [part 1 of] the examination on the fundamentals of land surveying or
receive a waiver of [part 1 before taking part 2
of]that requirement
before he may take the examination [.]on the principles and practices of
land surveying.

3. The board may administer
or authorize an accredited college or university that offers a program in land
surveying approved by the board to administer
the examination on the fundamentals of land surveying to persons who are not
applicants for licensure as professional land surveyors in this state.

administer the
examination on the fundamentals of land surveying to persons who are not applicants
for licensure as professional land surveyors in this state.

4. The
board may prescribe or limit the use of notes, texts and reference materials [, but shall allow each applicant to use any standard
table of mathematical or physical data of his own selection within the
prescribed or limited categories.

4. Oral
examinations must be given in the manner prescribed by the board.]by applicants who are taking the
examinations.

5. The
board may require the examinations or any portion of the examinations set forth
in this section to be completed:

(a) In
writing, with a pen or pencil of a type that has been approved by the board;

(b) With
a computer that has been provided or approved by the board; or

(c) Orally,
in the manner prescribed by the board.

Sec. 28. NRS 625.290 is
hereby amended to read as follows:

625.290 To qualify for [registration]licensure as a professional engineer or professional land
surveyor or for certification as [a
land-surveying]an
engineer intern or land surveyor intern, an applicant must
receive a grade of not less than 70 on [his
examination.]each
examination required by the board.

Sec. 29. NRS 625.295 is
hereby amended to read as follows:

625.295 1. The board shall
issue a [certificate of registration]license to practice professional
engineering or land surveying to any applicant who, in the
opinion of the board, has satisfactorily met all the requirements of this
chapter concerning professional engineers
or professional land surveyors [.

2. Certificates of
registration],
respectively.

2. A
licenseto practice
professional engineering or land surveying must:

(a) Show the full name of the [registrant.

(b) Have a registration
number.]licensee.

(b) Include
the number of the license.

(c) Be signed by the chairman and executive
director under the seal of the board.

(d) Authorize the practice of professional engineering in the
discipline for which the applicant has qualified or the practice of land
surveying [.], respectively.

3. The issuance of a [certificate of registration]licenseto practice professional engineering or
land surveying by the board is evidence that the person named
thereon is entitled to all the rights and privileges of a professional engineer or professional land
surveyor , respectively, while
the [certificate]license remains
unrevoked or unexpired.

Sec. 30. NRS 625.300 is
hereby amended to read as follows:

625.300 1. The board may issue a license
to practice professional
engineering or land surveying to an applicant, upon presentation
of evidence [of registration]that he is licensed to practice
professional engineering or land surveying, respectively, and
in good standing [from]in a state [or territory maintaining], territory, possession of the United
States or country that maintains standards
of engineering or land-surveying [registration] licensure, equivalent to those
in Nevada, if [such person,] the applicant, in the judgment of the board, has
the necessary qualifications [under] pursuant to the provisions of this
chapter.

that maintains
standards of engineering or land-surveying
[registration]licensure, equivalent
to those in Nevada, if [such person,]the applicant,
in the judgment of the board, has the necessary qualifications [under]pursuant to the provisions of this
chapter.

2. The
board [, in its discretion,] may
require an applicant for licensure
as a professional engineer or professional land surveyor pursuant to subsection
1 to pass a written or oral examination [.]conducted by not less than three
professional engineers or professional land surveyors, respectively.

Sec. 31. NRS 625.325 is
hereby amended to read as follows:

625.325 1. Each professional engineer and professional
land surveyor [must, upon registration,]shall obtain a [seal]stamp of the design authorized by the
board, bearing his name and [registration]the number of his license and the
legend Professional Engineer
followed by the discipline for which he is qualified or the legend Professional
Land Surveyor [.

2. A rubber stamp
which produces in ink the same design and information required by subsection 1
may be used in lieu of the prescribed seal.

3.], respectively.

2. A
professional land surveyor shall not use the legend Professional Engineer.

Sec. 32. NRS 625.330 is
hereby amended to read as follows:

625.330 1. A professional
land surveyor may practice land surveying and prepare:

(a) Maps, plats, reports and descriptions; and

(b) Grading and drainage plans for residential
subdivisions containing four lots or less,

or other documentary evidence in connection therewith.

2. [Every
map, plat, report, drawing, description, grading and drainage plan or other
document issued by a professional land surveyor must be signed by him, endorsed
with his certificate number, dated and stamped with his seal or rubber stamp,
whenever the map, plat, report, drawing, description, grading and drainage plan
or other document is filed as a public record, filed with any public authority
or delivered as a formal or final document.

3.] It
is unlawful for a professional land surveyor to sign [,
stamp or seal]or
stamp any map, plat, report, description, grading and
drainage plan or other document relating to land surveying which was not
prepared by him or for which he did not have [the]
responsible charge of the work.

3. It
is unlawful for a professional engineer to sign or stamp any plans,
specifications or reports that were not prepared by him or for which he did not
have responsible charge of the work.

4. It is unlawful for [anyone to stamp or seal]any person to impress any
documents with the [seal]stamp of a professional engineer or
professional land surveyor after the [certificate]license of the
professional engineer or
professional land surveyor named on the [seal]stamp has
expired or has been suspended or revoked, unless his [certificate]license has been
renewed or reissued.

5. It
is unlawful for any person to impress any documents with the stamp of a
professional engineer or professional land surveyor after the professional
engineer or professional land surveyor has retired from the practice of
professional engineering or land surveying.

6. The
board shall, by regulation, prescribe additional requirements relating to the
signing and stamping of documents produced by a professional engineer or a
professional land surveyor.

7. A
person who violates any of the provisions of this section is guilty of a gross
misdemeanor.

Sec. 33. NRS 625.335 is
hereby amended to read as follows:

625.335 1. A surveyor may
enter public or private land, a water course or a body of water to:

2. Before entering private land pursuant
to subsection 1, a surveyor [shall]must provide
written notice to the owner or occupant of the land of the proposed date and
approximate time of entry upon the land and a statement of the purpose for
entry upon the land. The notice must include the name, [registration]number of the license and
business affiliation of the surveyor. The surveyor shall obtain the approval of
the owner or occupant of the land before entry. An owner shall not unreasonably
withhold approval of such entry on his land. The provisions of this subsection
are not applicable to an entry made pursuant to NRS 37.050.

3. [Nothing
in]The
provisions of this section [may
be construed to]do
not relieve a surveyor from any civil liability for any
damage caused by his entry pursuant to subsection 1.

4. As used in this section, surveyor
includes:

(a) A professional land surveyor or his
designee.

(b) A surveyor employed by the Federal
Government or an agency of the Federal Government, the State of Nevada, a
political subdivision of the state or an agency of the state.

Sec. 34. NRS 625.350 is
hereby amended to read as follows:

625.350 1. A record of
survey must be a map legibly drawn in waterproof ink on tracing cloth or
produced by the use of other materials of a permanent nature generally used for
[such]that purpose in the engineering
profession. The size of each sheet must be 24 by 32 inches. A marginal line
must be drawn completely around each sheet, leaving an entirely blank margin of
1 inch at the top, bottom and right edges, and 2 inches at the left edge along
the 24-inch dimension.

2. A record of survey must show:

(a) All monuments found, set, reset or replaced,
describing their kind, size and location and giving other data relating
thereto.

(b) Bearing or witness monuments, the basis of
bearings, bearing and length of lines and the scale of the map.

(c) The name and legal description of the tract
in which the survey is located and any ties to adjoining tracts.

(d) The tie to [Coast
and Geodetic Survey Control System,]the control network maintained by the National Geodetic
Survey of the National Oceanic and Atmospheric Administration, if
points of the [system]networkare
established in the area in which the survey is made.

(e) A memorandum of oaths, if any.

(f) The signature and validated [seal]stamp of the surveyor who performed the
survey.

(g) A certificate prepared by the surveyor
indicating:

(1) The person or entity for whom the
survey was performed;

(2) The general vicinity of the property
being surveyed;

(3) The date the survey was completed;

(4) Whether monuments were found or set
and, if so, their character and location as shown; and

(5) Any other pertinent information.

(h) Any other data necessary for the [intelligent] interpretation of the
various items and locations of the points, lines and areas shown.

3. If the land surveyed is described in
terms of area, the record of the survey must show the area of the land surveyed
in the following manner:

(a) In acres, calculated to the nearest
one-hundredth of an acre, if the area is 2 acres or more; or

(b) In square feet , if the area is less than 2 acres.

4. As
used in this section, control network means a system of coordinates that
defines latitude, longitude, height, scale, gravity and orientation throughout
the United States.

Sec. 35. NRS 625.380 is
hereby amended to read as follows:

625.380 1. Monuments set
must be sufficient in number and durability and efficiently placed so as not to
be readily disturbed to [assure,]ensure, together
with monuments already existing, the perpetuation of facile reestablishment of
any point or line of the survey.

2. Any monument set by a professional
land surveyor to mark or reference a point on a property or boundary line must be
permanently and visibly marked or tagged with the [registration]number of the license of
the professional land surveyor setting it, each number to be preceded by the
letters P.L.S.

Sec. 36. NRS 625.385 is
hereby amended to read as follows:

625.385 1. The board shall
certify as an [engineering]engineer intern or [land-surveying]land surveyor intern any person qualified
pursuant to the provisions of this chapter.

2. A person certified as an engineer intern or land surveyor
intern pursuant to subsection 1 may practice only engineering or land surveying , respectively, as a
subordinate. Any work performed by an [engineering]engineer intern
or [land-surveying]land surveyor intern
may, if deemed of a satisfactory nature by the board, be applied toward the
requirements for experience set forth in NRS [625.180
and 625.270.]625.270
and section 10 of this act for certification as an engineer intern or land
surveyor intern, respectively.

625.390 1. An applicant for [registration]licensure as a professional engineer or professional land surveyor
or for certification as an [engineering]engineer intern
or [land-surveying]land surveyor intern
must:

(a) Complete a form furnished and prescribed by
the board;

(b) Answer all questions on the form under oath;
[and]

(c) Provide a detailed summary of his technical
training and education [.]; and

(d) Pay
the fee established by the board.

2. Unless the requirement is waived by
the board, an applicant for [registration]licensure must
provide the names of not less than four references who have knowledge of the
background, character and technical competence of the applicant. None of the
persons named as references may be members of the board. If the applicant is:

(a) Applying for [registration
as a land-surveying intern, at least three of the persons named as references
must be professional land surveyors registered in this or any other state.

(b) Applying for
registration]licensure
as a professional engineer, the persons named as references must be
professional engineers [registered]licensed in this
state or any other
state, three of whom must be [registered]licensed in the
same discipline of engineering for which the applicant is applying for [registration.

(c)]licensure.

(b) Applying
for [registration]licensure as a professional land
surveyor, the persons named as references must be professional land surveyors [registered]licensed in this state or any other state.

3. The board shall, by regulation,
establish the [application] fee for
licensure as a professional
[engineers]engineer and professional [land surveyors]land surveyor in an amount not more than
$200. The fee is nonrefundable and must accompany the application.

4. The board shall charge and collect
from each applicant for certification as an [engineering]engineer intern
or [land-surveying]land surveyor intern a
fee fixed by the board of not more than $100, which includes the cost of
examination and the issuance of a certificate.

5. A nonresident applying for [registration]licensure as a professional engineer or professional land surveyor
is subject to the same fees as a resident.

6. An applicant must furnish proof that
he is a citizen of the United States or that he is lawfully entitled to remain
and work in the United States.

7. The board shall require the biennial
renewal of each [certificate of registration]license of a
professional engineer or professional land surveyor and collect a [renewal] fee for renewal of not more than $100, prescribed
by regulation of the board, except that the board may prescribe shorter periods
and prorated fees in setting up a system of staggered renewals.

8. In addition to the fee for renewal,
the board shall require a holder of an expired [certificate
of registration]license
to pay, as a condition of renewal, a penalty in an amount established by
regulation of the board.

625.395 Each [person
who holds a certificate of registration]licensee mustrenew his [certificate]license and pay the fee for renewal. Any [holder of a certificate of registration]licenseewho
fails to renew his [certificate]license may do
so within 6 months after the date of its expiration, upon application to and
with the approval of the board, and upon payment of all required fees and
penalties. The board may extend the time for renewal of the expired [certificate.]license.

Sec. 39. NRS 625.397 is
hereby amended to read as follows:

625.397 The board may require any person:

1. Whose [certificate
authorizing the person]license to practice professional
engineering or land surveying has expired; or

2. Who has been the subject of a
disciplinary proceeding before the board,

to pass a written or oral examination as a condition of
reinstating or renewing his [certificate.]license.

Sec. 40. NRS 625.400 is
hereby amended to read as follows:

625.400 A new [certificate
of registration]license
to replace any [certificate]license revoked, lost,
destroyed or mutilated may be issued, subject to the regulations of the board,
and a charge of not more than $40 may be made for its issuance.

Sec. 41. NRS 625.403 is
hereby amended to read as follows:

625.403 The use of the word certify or
certification by a [registered]
professional engineer or professional
land surveyor in the practice of professional engineering or land
surveying constitutes an expression of professional opinion regarding those
facts or findings which are the subject of the certification.

Sec. 42. NRS 625.405 is
hereby amended to read as follows:

625.405 1. Any person who
furnishes information concerning a
licensee, an applicant for [registration
or a registrant]licensure,
an intern or an applicant for certification as an intern in
good faith and without malicious intent is immune from any civil action for
furnishing that information.

2. The board, any member, employee or
committee of the board, counsel, investigator, expert, hearing officer, [registrant]licensee, intern or other person who
assists the board in the investigation or prosecution of an alleged violation
of a provision of this chapter, a proceeding concerning licensure or reissuance
of a licenseor a criminal prosecution is immune from any civil
liability for:

(a) Any decision or action taken in good faith
and without malicious intent in response to information acquired by the board.

(b) Disseminating information concerning a licensee, an applicant
for [registration or a registrant]licensure, an intern or an
applicant for certification as an intern to any other
licensing board, national association of registered boards, an agency of the
Federal Government or of the state, the attorney general or any law enforcement
agency.

Sec. 43. NRS 625.410 is
hereby amended to read as follows:

625.410 The board may take disciplinary
action against [any registrant or any person
applying for registration for any of the following reasons:]a licensee, an applicant for licensure, an intern or an applicant
for certification as an intern for:

licensee, an
applicant for licensure, an intern or an applicant for certification as an
intern for:

1. The practice of any fraud or deceit in
obtaining or attempting to obtain or renew a [certificate
of registration]license
or cheating on any examination required by this chapter.

2. Any gross negligence, incompetency or
misconduct in the practice of professional engineering as a [registered]professional engineer
or in the practice of land surveying as a professional land surveyor.

3. Aiding or abetting any person in the
violation of any provision of this chapter or regulation adopted by the board.

4. Conviction of or entry of a plea of nolo
contendere to:

(a) Any felony; or

(b) Any crime, an essential element of which is
dishonesty, or which is directly related to the practice of engineering or land
surveying.

5. A violation of any provision of this
chapter or regulation adopted by the board.

6. Discipline by another state or
territory, the District of Columbia, a foreign country, the Federal Government
or any other governmental agency, if at least one of the grounds for discipline
is the same or substantially equivalent to any ground contained in this
chapter.

7. Practicing after [his certificate of registration]the license of the professional engineer
or professional land surveyor has expired or has been
suspended or revoked.

8. [Failure]Failing to
comply with an order issued by the board.

9. [Failure]Failing to
provide requested information within 30 days after receipt of a request by the
board or its investigators concerning a complaint made to the board.

Sec. 44. NRS 625.420 is
hereby amended to read as follows:

625.420 1. Any person may
file with the board a charge concerning a violation of any provision of this
chapter or regulation adopted by the board against any [registrant.
Charges]person.
The charges must be in writing and filed with the board.

2. All charges, unless dismissed by the
board as unfounded or trivial, must be heard by the board within a reasonable
time. An action against a [registrant] person may not be
commenced by the filing of a formal complaint more than 1 year after the date
on which the board received the charges.

Sec. 45. NRS 625.425 is
hereby amended to read as follows:

625.425 1. Any information
obtained during the course of an investigation by the board and any record of
an investigation is confidential until the investigation is completed. If no
disciplinary action is taken against a [registrant,]licensee, an applicant for
licensure, an intern or an applicant for certification as an intern, or no
civil penalty is imposed pursuant to NRS 625.590, the
information in [any]his investigative file
remains confidential. If a formal complaint is filed, all pleadings and
evidence introduced at the hearing
are public records.

2. The provisions of this section do not
prohibit the board or its employees from communicating and cooperating with
another licensing board or any other agency that is investigating a [registrant.]person.

625.430 1. The time and
place for the hearing must be fixed by the board, and notice of the time and
place of hearing must be personally served on [the
registrant] the
person against whom a complaint has been filed with the board or
mailed to [the]his last known address
[of the registrant] at least 30
days before the date fixed for the hearing.

2. The board may suspend the [certificate of registration]license of a [registrant]licensee without a hearing if the board finds,
based upon evidence in its possession, that the public health, safety or
welfare imperatively requires summary suspension of the [certificate
of registration]license
and incorporates that finding in its order. If the board summarily suspends the
[certificate of registration]license of a [registrant,]licensee, a hearing must be held within 30
days after the suspension.

Sec. 47. NRS 625.460 is
hereby amended to read as follows:

625.460 If, after a hearing, a majority
of the members of the board present at the hearing vote in favor of finding the
accused [professional engineer, professional land
surveyor, or applicant for registration as a professional engineer or land
surveyor or for certification as an engineering intern or land-surveying intern,]person guilty,
the board may:

1. Revoke the [certificate
of registration]license
of the [registered] professional
engineer or professional land
surveyor or deny a [certificate of registration]license to the
applicant;

2. Suspend the license of the
professional engineer or professional
land surveyor;

3. Fine the [professional
engineer, professional land surveyor] licensee orapplicant for licensure not more
than [$5,000]$15,000 for each
violation of a provision of this chapter or any regulation adopted by the
board;

4. Place the [professional
engineer, professional land surveyor]licensee or applicant for licensure on probation for such periods as
it deems necessary and, if the board deems appropriate, require the [professional engineer, professional land surveyor]licensee orapplicant for licensure to pay
restitution to clients or other persons who have suffered economic losses as a
result of a violation of the provisions of this chapter or the regulations
adopted by the board; or

5. Take such other disciplinary action as
the board deems appropriate.

Sec. 48. NRS 625.470 is
hereby amended to read as follows:

625.470 The board [,
for reasons which it may deem sufficient,] may reissue a [certificate of registration]license to any person
whose [certificate]license has been
revoked if a majority of the members of the board vote in favor of [such] reissuance.

Sec. 49. NRS 625.480 is
hereby amended to read as follows:

625.480 The following persons are exempt
from the provisions of this chapter which require [registration:]licensure:

1. Any subordinate of a [registered] professional engineer of
this state [insofar as]if he acts as a
subordinate.

2. Officers and employees of the United
States Government who have qualified [under]pursuant to
federal regulations and have been authorized to do engineering for the Federal
Government, but no such governmental officer or employee may engage in the
private practice of engineering in Nevada unless he is
[registered under the law.]

4. Officers and employees of the United
States Government who have qualified [under]pursuant to
federal regulations and have been authorized to make surveys for the
government, but such a governmental employee shall not engage in private
practice as a land surveyor in Nevada unless he is [registered
under]licensed
pursuant to the provisions of this chapter.

Sec. 51. NRS 625.500 is
hereby amended to read as follows:

625.500 The [registration]licensure
requirements of this chapter do not apply to the employees of interstate or
intrastate public utility companies while they are engaged in work for [such]those companies or to any architect
registered [under]pursuant to the
provisions of chapter 623 of NRS and who practices architecture as permitted by
chapter 623 of NRS.

Sec. 52. NRS 625.520 is
hereby amended to read as follows:

625.520 1. Except as
otherwise provided in subsection 4, it is unlawful for:

(a) Any person not properly licensed or exempted
in accordance with the provisions of this chapter to:

(1) Practice, continue to practice,
solicit to practice, offer to practice or attempt to practice engineering or
any discipline thereof;

(2) Employ, use or cause to be used any
of the following terms or any combination, variation or abbreviation thereof as
a professional or commercial identification, representation, claim, asset or
means of advantage or benefit, namely, engineer, engineering, engineered,
professional engineer or licensed engineer; or

(3) Directly or indirectly employ any
means which in any manner tends or is likely to create the impression on the
public or any member thereof that any person is qualified or authorized to
practice engineering.

(b) Any [registered]professional engineer to practice or offer to practice a discipline of
professional engineering in which the board has not qualified him.

(c) Any person to present or attempt to use, as
his own, the [certificate of registration]license or the [seal]stamp of another [.]person.

(d) Any person to give any false or forged
evidence of any kind to the board or any member thereof in obtaining a [certificate of registration.]license.

(e) Any person to impersonate any other [registrant]licensee of like or different name.

(f) Any person to attempt to use an expired,
suspended or revoked [certificate of
registration.]license.

(g) Any person to violate any of the provisions
of this chapter.

2. Whenever any person is engaging or is
about to engage in any act or practice that constitutes a violation of this
chapter, the district court in any county, if the court would have jurisdiction
over the violation, may, upon application of the board, issue an injunction or
restraining order against the act or practice pursuant to Rule 65 of the Nevada
Rules of Civil Procedure.

3. This section does not prevent a
contractor licensed in accordance with the provisions of chapter 624 of NRS
from using the term engineer or engineering if the term is used by the
state contractors board in describing a specific classification.

4. Subparagraph (2) of paragraph (a) of
subsection 1 does not apply to any corporation using such a term in its
corporate name, if the corporation:

(a) Filed its articles of incorporation with the
secretary of state on or before September 30, 1991; and

(b) Files with the board a written statement
signed by a corporate officer under penalty of perjury in which he states that
the corporation:

(1) Is not practicing or offering to
practice engineering in this state; and

(2) Will not do so unless [and until] it is properly licensed or
exempted in accordance with the provisions of this chapter.

5. Any person who violates any of the
provisions of subsection 1 is guilty of a gross misdemeanor.

Sec. 53. NRS 625.530 is
hereby amended to read as follows:

625.530 1. The State of
Nevada or any of its political subdivisions, [such
as]including
a county, city or town, shall not engage in any public work requiring the
practice of professional engineering
or land surveying ,[or engineering,] unless the maps,
plans, specifications, reports and estimates have been prepared by, and the
work executed under the supervision of, [a
registered]a professional
engineer, professional land surveyor or registered architect.

2. [Nothing
in]The
provisions of this section [:

(a) Applies]do not:

(a) Apply
to any public work wherein the expenditure for the complete project of which
the work is a part does not exceed $35,000.

(b) [Includes]Include any
maintenance work undertaken by the State of Nevada or its political
subdivisions.

(c) [Authorizes
either]Authorize
a professional engineer , [or a] registered architect or [a] professional land surveyor to
practice in violation of any of the provisions of chapter 623 of NRS or this
chapter.

(d) [Requires]Require the
services of an architect registered [under]pursuant to the provisions of
chapter 623 of NRS for the erection of buildings or structures manufactured in
an industrial plant, if [such]those buildings or
structures meet the requirements of local building codes of the jurisdiction in
which they are being erected.

3. The selection of a [registered] professional engineer,
professional land surveyor or registered architect to perform services [under]pursuant to subsection 1 must be made on
the basis of the competence and qualifications of the
engineer, land surveyor or architect for the type of services to be performed
[,] and not on the basis of competitive fees.

of the engineer, land surveyor or architect for the type of
services to be performed [,] and
not on the basis of competitive fees. If, after selection of the engineer, land
surveyor or architect, an agreement upon a fair and reasonable fee cannot be
reached with him, the public agency may terminate negotiations and select
another engineer, land surveyor or architect.

Sec. 54. NRS 625.540 is
hereby amended to read as follows:

625.540 1. It is unlawful
for a person [:]who is:

(a) Not properly [registered,]
licensed or exempted in accordance with the provisions of this chapter to:

(1) Practice, continue to practice,
solicit to practice, offer to practice or attempt to practice land surveying;

(2) Set, reset or replace any survey
monument; or

(3) Directly or indirectly employ any
means which in any manner tends or is likely to create the impression on the
public or any member thereof that any person who is not licensed [or registered] pursuant to this chapter
is qualified or authorized to practice land surveying.

(b) To present or attempt to use, as his own,
the [certificate of registration,]
license or [seal]stamp of another [.]person.

(c) To give any false or forged evidence of any
kind to the board or any member thereof in obtaining a [certificate
of registration or] license.

(d) To impersonate any other [registrant]licensee of the same or a different name.

(e) To attempt to use an expired, suspended or
revoked [certificate of registration or]
license.

(f) To violate any of the provisions of this
chapter.

2. A person who violates any of the
provisions of subsection 1 is guilty of a gross misdemeanor.

Sec. 55. NRS 625.560 is
hereby amended to read as follows:

625.560 It is unlawful for any person to
sign [, stamp or seal]or stamp any map,
plat, report, description or other document pertaining to the practice of land
surveying unless he holds [a valid]an unsuspended and
unrevoked [certificate]license as a
professional land surveyor.

Sec. 56. NRS 625.570 is
hereby amended to read as follows:

625.570 Any
employee or [official]officer who is
employed on a full-time basis by the state, or a county, city or district
thereof, who is paid a monthly or annual salary for his employment and whose
public duty includes the practice of professional engineering or the practice
of land surveying as defined in this chapter shall not engage in the private
practice of professional engineering or the private practice of land surveying
during the hours when he is required to perform his duties for the state,
county, city or district.

Sec. 57. NRS 625.580 is
hereby amended to read as follows:

625.580 [Any
public official violating the provisions]If a public officer violates a provision
of this chapter , the board shall
[:

1. Be punished by]impose a fine in an amount not [exceeding $500; and

2. Shall]to exceed $5,000 and may require
the public officer to forfeit his office.

625.590 1. In addition to
any other penalty provided by law, a person who violates any provision of this
chapter or any regulation adopted by the board is subject to a civil penalty of
not more than [$5,000]$15,000 for each violation.
Any such penalty must be imposed by the board at a hearing for which notice has
been given pursuant to NRS 625.430.

2. If a person does not pay a civil
penalty imposed pursuant to subsection 1 within 60 days after the order of the
board becomes final, the order may be executed upon in the same manner as a
judgment issued by a court.

Sec. 59. NRS 625A.020 is
hereby amended to read as follows:

625A.020 As
used in this chapter, unless the context otherwise requires:

(a) Is qualified to advocate or recommend the
use of sanitary measures for the public benefit by reason of education,
practical training and experience determined by the board to be satisfactory;
and

(b) Has received from the board a certificate of
registration.

The term does not include any person who engages in the
practice of professional engineering, unless he is [registered]licensed to do
so pursuant to chapter 625 of NRS.

Sec. 60. NRS 627.190 is
hereby amended to read as follows:

627.190 Every
construction control shall:

1. Obtain a true copy, certified as [such]true by a registered architect or [registered]licensed professional engineer and signed
by the person or persons who executed the general contract of construction or
the owner-contractor contracts, respectively, as owner, of the complete plans
and specifications to be used in the construction subject to the construction
control.

2. Obtain from the lender a written
statement of the total net amount of [moneys,]money, credits
or loan proceeds that will be available for disbursement or, as a lender
engaging in construction control functions, review and ascertain its total net
amount.

3. Obtain a true copy, signed by all the
parties thereto, of the general contract of construction or all
owner-contractor contracts, [under]pursuant to
which the construction will be performed.

4. Obtain a true copy, signed by the
parties thereto, of all of the subcontracts entered into with a contractor if
the construction is to be performed [under]pursuant toa general contract of
construction.

5. Compare the total amounts to be paid [under]pursuant to all of the subcontracts with
the total amount payable to the general contractor, and compare the amount
payable with the total net loans proceeds available for disbursement as
construction loan funds.

6. Compare the total amounts to be paid [under]pursuant to all owner-contractor contracts
entered into with the total net loan proceeds available for disbursement as
construction loan funds.

7. Establish, in writing, the categories
of disbursement and the amounts of [moneys]money
apportioned to each category for disbursement.

8. Disburse or authorize the disbursement
of [moneys]money from a particular category only for
bills incurred within that category.

9. Disburse or authorize the disbursement
of funds if the total net loan proceeds exceeds in amount or equals the total
payable by the terms of:

(a) The general contract of construction, or the
subcontracts entered into with the general contractor, whichever is greater; or

(b) The total payable by the terms of all
owner-contractor contracts.

10. Receive funds before authorizing
disbursement, [in the event that]if other funds
are [still] needed to create an
excess of funds as required [under]pursuant to
subsection 9.

11. Restore categories of disbursement in
the order in which they become exhausted and to the amount exhausted from any
available funds in its hands and from other funds supplied by the borrower or
borrowers.

12. Obtain from the obligee a mechanics
lien release covering all work, labor and materials performed or supplied to
the time specified in the lien release and for the amount payable [under]pursuant to the terms of the release, [prior to]before the disbursement of any [moneys]money for payment of such bills.

13. Upon receipt of written notice of a
change order entered into after the beginning of construction which requires
expenditure of extra [moneys]money and the amount
thereof, require that any category of disbursement affected thereby be
increased and restored to the extent of the amount of such extras from any
available funds in its hands and from other funds supplied by the borrower
before the disbursement of additional funds from [such]that category.

14. Before disbursing [moneys]money to a subcontractor or supplier,
obtain from that subcontractor or supplier a true copy of the bill, in those
instances in which the category was established based upon a proposal or bid of
that subcontractor or supplier and not upon a firm contract.

Sec. 61. NRS 78.045 is
hereby amended to read as follows:

78.045 1. The
secretary of state shall not accept for filing any articles of incorporation or
any certificate of amendment of articles of incorporation of any corporation formed
[under]pursuant to the laws of this state which
provides that the name of the corporation contain the word bank or trust,
unless:

(a) It appears from the articles or the
certificate of amendment that the corporation proposes to carry on business as
a banking or trust company, [either]
exclusively or in connection with its business as a bank or savings and loan
association; and

(b) The articles or certificate of amendment is
first approved by the commissioner of financial institutions.

2. The secretary of state shall not
accept for filing any articles of incorporation or any certificate of amendment
of articles of incorporation of any corporation formed [under]pursuant to the provisions of
this chapter when it appears from the articles or the certificate of amendment
that the business to be carried on by the corporation is subject to supervision
by the commissioner of insurance or by the commissioner of financial
institutions, unless the articles or certificate of amendment is first approved
by the commissioner who will be supervising the business of the corporation.

3. Except as otherwise provided in subsection
4, the secretary of state shall not accept for filing any articles of
incorporation or any certificate or amendment of articles of incorporation of
any corporation formed [under]pursuant to the laws
of this state if the name of the corporation contains the words engineer,
engineered, engineering, professional engineer or licensed engineer
unless:

(a) The state board of professional engineers
and land surveyors certifies that the principals of the corporation are [registered]licensed to practice engineering [or are registered to practice engineering and
architecture, except landscape architecture, under]pursuant to the laws
of this state; or

(b) The state board of professional engineers
and land surveyors certifies that the corporation is exempt from the
prohibitions of NRS 625.520.

4. The provisions of subsection 3 do not
apply to any corporation, whose securities are publicly traded and regulated by
the Securities Exchange Act of 1934, which does not engage in the practice of
professional engineering.

5. The commissioner of financial
institutions and the commissioner of insurance may approve or disapprove the
articles or amendments referred to them [under]pursuant to the
provisions of this section.

Sec. 62. NRS 80.010 is
hereby amended to read as follows:

80.010 1. Before
commencing or doing any business in this state, every corporation organized
pursuant to the laws of another state, territory, the District of Columbia, a
dependency of the United States or a foreign country, that enters this state to
do business must:

(a) File in the office of the secretary of state
of this state:

(1) A certificate of corporate existence
issued not more than 90 days before the date of filing by an authorized officer
of the jurisdiction of its incorporation setting forth the filing of documents
and instruments related to the articles of incorporation, or the governmental
acts or other instrument or authority by which the corporation was created. If
the certificate is in a language other than English, a translation, together
with the oath of the translator and his attestation of its accuracy, must be
attached to the certificate.

(2) A certificate of acceptance of
appointment executed by its resident agent, who must be a resident or located
in this state. The certificate must set forth the name of the resident agent,
his street address for the service of process, and his mailing address if
different from his street address. The street address of the resident agent is
the registered office of the corporation in this state.

(3) A statement executed by an officer of
the corporation, acknowledged before a person authorized by the laws of the
place where the acknowledgment is taken to take acknowledgments of deeds,
setting forth:

(I) A general description of the
purposes of the corporation; and

(II) The authorized stock of the
corporation and the number and par value of shares having par value and the
number of shares having no par value.

(b) Lodge in the office of the secretary of
state a copy of the document most recently filed by the corporation in the
jurisdiction of its incorporation setting forth the
authorized stock of the corporation, the number of par value shares and their
par value, and the number of no-par-value shares.

setting forth the authorized stock of the corporation, the
number of par value shares and their par value, and the number of no-par-value
shares.

2. The secretary of state shall not file
the documents required by subsection 1 for any foreign corporation whose name
is the same as, or deceptively similar to the name of a corporation, limited
partnership or limited-liability company existing [under]pursuant to the
laws of this state or a foreign corporation, foreign limited partnership or
foreign limited-liability company authorized to transact business in this state
or a name to which the exclusive right is at the time reserved in the manner
provided [under]in the laws of this
state, unless the written acknowledged consent of the holder of the registered
or reserved name to use the same name or the requested similar name accompanies
the articles of incorporation.

3. The secretary of state shall not
accept for filing the documents required by subsection 1 or NRS 80.110 for any
foreign corporation if the name of the corporation contains the words
engineer, engineered, engineering, professional engineer or licensed
engineer unless the state board of professional engineers and land surveyors
certifies that:

(a) The principals of the corporation are [registered] licensed to practice engineering [or are registered to practice engineering and
architecture, except landscape architecture,] pursuant to the
laws of this state; or

(b) The corporation is exempt from the
prohibitions of NRS 625.520.

4. The secretary of state shall not
accept for filing the documents required by subsection 1 or NRS 80.110 for any
foreign corporation if it appears from the documents that the business to be
carried on by the corporation is subject to supervision by the commissioner of
financial institutions, unless the commissioner certifies that:

(a) The corporation has obtained the authority
required to do business in this state; or

(b) The corporation is not subject to or is
exempt from the requirements for obtaining such authority.

Sec. 63. NRS 116.4106 is
hereby amended to read as follows:

116.4106 1. The
public offering statement of a common-interest community containing any
converted building must contain, in addition to the information required by NRS
116.4103 and 116.41035:

(a) A statement by the declarant, based on a
report prepared by an independent registered architect or licensed professional engineer, describing the
present condition of all structural components and mechanical and electrical
installations material to the use and enjoyment of the building;

(b) A statement by the declarant of the expected
useful life of each item reported in paragraph (a) or a statement that no
representations are made in that regard; and

(c) A list of any outstanding notices of uncured
violations of building codes or other municipal regulations, together with the
estimated cost of curing those violations.

2. This section applies only to a
common-interest community comprised of a converted building or buildings
containing more than 12 units that may be occupied for residential use.

119.140 Any
person or broker proposing to offer or sell any subdivision or lot, parcel,
unit or interest therein in this state shall first submit to the division:

1. The name and address of each person
owning or controlling an interest of 10 percent or more.

2. The name, principal occupation and
address of every officer, director, partner, owner, associate or trustee of the
subdivider.

3. The legal description and area of
lands.

4. A true statement of the condition of
the title to the land, [particularly]
including all encumbrances thereon.

5. A true statement of the terms and
conditions on which it is intended to dispose of the land and copies of the
instruments which will be delivered to a purchaser to evidence his interest in
the subdivision and of the contracts and other agreements which a purchaser
will be required to agree to or sign.

6. A true statement of the provisions, if
any, that have been made for public utilities in the proposed subdivision,
including water, electricity, gas, telephone and sewerage facilities.

7. A true statement of the use for which
the proposed subdivision will be offered.

8. A true statement of the provisions, if
any, limiting the use or occupancy of the parcels in the subdivision.

9. A true statement of the maximum depth
of fill used, or proposed to be used on each lot, and a true statement on the
soil conditions in the subdivision supported by engineering reports showing the
soil has been, or will be, prepared in accordance with the recommendations of a
[registered]licensed civil
engineer.

10. A true statement of the amount of
indebtedness which is a lien upon the subdivision or any part thereof, and
which was incurred to pay for the construction of any onsite or offsite
improvement, or any community or recreational facility, and the names and
addresses of the holders of [such]the indebtedness
together with an indication of their relationship, if any, to the owner and
subdivider.

11. A true statement or reasonable
estimate, if applicable, of the amount of any indebtedness which has been or is
proposed to be incurred by an existing or proposed special district, entity,
taxing area or assessment district, within the boundaries of which the
subdivision, or any part thereof, is located, and which is to pay for the
construction or installation of any improvement or to furnish community or
recreational facilities to [such]the subdivision,
and which amounts are to be obtained by ad valorem tax or assessment, or by a
special assessment or tax upon the subdivision, or any part thereof.

12. A true statement describing any
agricultural activities or conditions in the area which may adversely affect
residents of the subdivision, including any odors, cultivation and related
dust, agricultural burning, application of pesticides, or irrigation and
drainage.

13. Such other information as the owner,
his agent or subdivider may [desire]wish to present.

14. A completed application for a license
in such form and containing such additional information as the division may
require on its filing forms.

15. The fees prescribed by this chapter.

Sec. 65. NRS 254.020 is
hereby amended to read as follows:

254.020 The
county engineer must be:

1. A qualified and competent civil
engineer.

2. [Registered]Licensed as a
professional engineer by the state board of professional engineers and land
surveyors.

Sec. 66. NRS 255.025 is
hereby amended to read as follows:

255.025 No
person may be appointed as a county surveyor unless he is a professional land
surveyor [registered]licensed pursuant to the
provisions of chapter 625 of NRS.

Sec. 67. NRS 266.019 is
hereby amended to read as follows:

266.019 1. The
petition for incorporation must include the following information concerning
the area proposed to be incorporated:

(a) A description of the area prepared by a professional land surveyor
[registered]licensed pursuant to
chapter 625 of NRS, which need not be made from a current survey nor contain
courses and distances measured from fixed points, but may be based upon
assessors parcel maps, existing boundaries of subdivision or parcel maps,
visible ground features, extensions of the visible ground features, or by any
boundary that coincides with the official boundary of the state, a county, a
city, a township, a section or any combination thereof.

(b) The proposed name of the city.

(c) The total acreage of the area.

(d) The number of persons who reside in the
area.

(e) The number of owners of record of real
property within the area.

(f) A statement that the area meets the
requirements of NRS 266.017.

(g) A statement of the committees plans for
providing police and fire protection, maintaining the streets, providing water
and sewer services, collecting the garbage and providing administrative services
in the proposed city, with an estimate of the costs and sources of revenue.

(h) A map or plat of the area which is prepared
from the description required by paragraph (a) and that shows the existing
dedicated streets, sewer interceptors and outfalls and their proposed
extensions.

2. The petition must be substantially in
the following form:

PETITION
FOR INCORPORATION

To the Board of County
Commissioners of .......... County, Nevada:

We, the undersigned
qualified electors of the State of Nevada respectfully petition the board of
county commissioners to submit a proposal to incorporate as a city certain
unincorporated contiguous area located within ................ County namely,
......................... (describe area to be incorporated), to the qualified
electors who reside within the area to be incorporated, for their approval or
disapproval at a special election to be held for that purpose.

1. I have
personally signed this petition as a qualified elector of this state; and

2. I have
correctly stated on this petition my residence, mailing address and the date of
my signature.

Sec. 68. NRS 266.0335 is
hereby amended to read as follows:

266.0335 Upon
approval of the incorporation by the voters, the board of county commissioners
shall authorize a professional
land surveyor [registered]licensed pursuant to
chapter 625 of NRS to prepare a legal description of the area of the
incorporated city by metes and bounds and courses and distances. The cost of
the survey is a charge against the incorporated city.

Sec. 69. NRS 278.371 is
hereby amended to read as follows:

278.371 1. The
survey, setting of monuments and final map must be made by a professional land
surveyor [registered]licensed in the State
of Nevada.

2. The final monuments must be set before
the recordation of the final map unless the subdivider furnishes a performance
bond or other suitable assurance to the governing body or planning commission
guaranteeing that the subdivider will provide a professional land surveyor to
set the monuments on or before a day certain. The governing body or planning
commission shall determine the amount of the performance bond, if any is
required. If a surveyor other than the one signing the final plat accepts
responsibility for the setting of monuments, a certificate of amendment must be
filed and recorded.

3. The final monument must, except as
otherwise provided in subsections 6 and 7, consist of a nonferrous tablet, disc
or cap securely attached to the top of a metallic shaft solidly embedded in the
ground, with a minimum diameter of 5/8 of an inch and a length sufficient to resist
removal, and a mark for the exact point and stamped PLS followed by the number of the professional
land surveyors [registration number.] license.

4. Final monuments must be set at:

(a) Each corner of the boundary of the
subdivision and at any point necessary to ensure that each monument on a given
boundary can be seen from the next monument on that boundary.

(b) Intersections of centerlines of streets.

(c) Sufficient locations along the centerlines
of streets so that the centerlines may be retraced. These locations may be at,
or on an offset to, an angle to the centerline of a street, the center of a
cul-de-sac, a point which defines a curve (the beginning or end of a curve or a
point of intersection of a tangent) or an intersection with a boundary of the
subdivision.

(d) A position for a corner of the system of
rectangular surveys which is used as control in the survey required by this
chapter to establish property lines and corners of the subdivision.

The governing body shall, by ordinance, adopt any additional
standards for the setting of final monuments which are reasonably necessary,
including the establishment of Nevada state plane coordinates thereon pursuant
to chapter 327 of NRS.

5. A final monument required in
subsection 4 which falls in a paved area must:

(a) Consist of a well with lid placed so that
the top of the tablet, disc or cap of the monument is not less than 4 inches
below the surface of the pavement; or

(b) Be of comparable construction as required by
the governing body.

The monument must be set flush with the top of the pavement
with such references as are required by the governing body.

6. If a point designated in subsection 4
falls on solid bedrock or on a concrete or stone roadway, curb, gutter or walk,
a durable nonferrous metal tablet, disc or cap must be securely anchored in the
rock or concrete and marked as required in subsection 3.

7. If a monument required by subsection 3
cannot be set because of steep terrain, water, marsh or existing structures, or
if it would be obliterated as a result of proposed construction, one or more
reference monuments must be set. In addition to the physical requirements for a
monument set forth in subsections 3 to 6, inclusive, the letters RM and WC
must be stamped in the tablet, disc or cap. If only one reference monument is
used, it must be set on the actual line or a prolongation thereof. Otherwise,
at least two reference monuments must be set. These monuments shall be deemed
final monuments.

8. A corner of a lot must be set by the
land surveyor in the manner approved by the governing body.

Sec. 70. NRS 278.375 is
hereby amended to read as follows:

278.375 A
final map presented for filing must include a certificate of the surveyor
responsible for the survey. The certificate must be in the following form:

Surveyors
Certificate

I,
.........................(Name of Surveyor), a Professional Land Surveyor [registered]licensed in the State of Nevada, certify
that:

1. This
plat represents the results of a survey conducted under my direct supervision
at the instance of

4. The
monuments depicted on the plat are of the character shown, occupy the positions
indicated and are of sufficient number and durability.

(OR)

4. The
monuments depicted on the plat will be of the character shown and occupy the
positions indicated by .............................. (a day certain) and an
appropriate financial guarantee will be posted with the governing body before
recordation to [assure]ensure the
installation of the monuments.

. . [Registration]License Number and [Seal:]Stamp:

(Name of
Surveyor)

Sec. 71. NRS 278.376 is
hereby amended to read as follows:

278.376 1. A
final map presented for filing must include a certificate by the county
surveyor or county engineer if a subdivision lies within an unincorporated
area, and if a subdivision lies within a city, a certificate by the city
surveyor, city engineer or county surveyor when for that purpose appointed by
the governing body of the city, stating:

(a) That he has examined the final map; and

(b) That the map is technically correct and that
if the monuments have not been set, that a proper performance bond has been
deposited guaranteeing their setting on or before a day certain.

2. The person certifying the information
required by this section must be [registered]licensed as a
professional land surveyor or civil engineer pursuant to chapter 625 of NRS.

Sec. 72. NRS 278.477 is
hereby amended to read as follows:

278.477 1. In
addition to the requirements of subsection 2, an amendment of a recorded
subdivision plat, parcel map, map of division into large parcels, or record of
survey which changes or purports to change the physical location of any survey
monument, property line or boundary line is subject to the following
requirements:

(a) If the proposed amendment is to a parcel
map, map of division into large parcels, or record of survey, the same
procedures and requirements apply as in the original filing.

(b) If the proposed amendment is to a
subdivision plat, only those procedures for the approval and filing of a final
map.

(a) Be identical in size and scale to the
document being amended, drawn in the manner and on the material provided by
law;

(b) Have the words Amended Plat of prominently
displayed on each sheet above the title of the document amended;

(c) Have a blank margin for the county
recorders index information;

(d) Have a 3-inch square adjacent to and on the
left side of the existing square for the county recorders information and
stamp;

(e) Contain or be accompanied by the report of a
title company and the certificate required by NRS 278.374 or an order of the
district court of the county in which the land is located that the amendment
may be approved without all the necessary signatures if the order is based upon
a finding that a bona fide effort was made to communicate with the necessary
persons, that all persons who responded have consented
thereto and that the amendment does not adversely affect the persons who did
not respond;

that all persons who responded have consented thereto and
that the amendment does not adversely affect the persons who did not respond;

(f) Contain a certificate of the professional
land surveyor [registered]licensed pursuant to
chapter 625 of NRS who prepared the amendment stating that it complies with all
pertinent sections of NRS 278.010 to 278.630, inclusive, and 625.340 to
625.380, inclusive, and with any applicable local ordinance; and

(g) For a survey recorded in support of an
adjusted boundary, contain a certificate executed by the appropriate county
surveyor, county engineer, city surveyor or city engineer, if he is [registered]licensed as a professional land surveyor
or civil engineer pursuant to chapter 625 of NRS stating that he has examined
the document and that it is technically correct.

3. Upon recording the amended document,
the county recorder shall cause a proper notation to be entered upon all
recorded sheets of the document being amended, if the county recorder does not
maintain a cumulative index for such maps and amendments. If such an index is
maintained, the county recorder shall direct an appropriate entry for the
amendment.

Sec. 73. NRS 278.4955 is
hereby amended to read as follows:

278.4955 1. The
map of reversion submitted pursuant to NRS 278.490 must contain the report and
the appropriate certificates required by NRS 278.376 and 278.377 for the
original division of the land, any agreement entered into for a required
improvement pursuant to NRS 278.380 for the original division of the land, and
the certificates required by NRS 278.496 and 278.4965. If the map includes the
reversion of any street or easement owned by a city, a county or the state, the
provisions of NRS 278.480 must be followed before approval of the map.

2. The final map of reversion must be:

(a) Prepared by a professional land surveyor [registered]licensed pursuant to chapter 625 of NRS.
The professional land surveyor shall state in his certificate that the map has
been prepared from information on a recorded map that is being reverted. The
professional land surveyor may state in his certificate that he assumes no
responsibility for the existence of the monuments or for correctness of other
information shown on or copied from the document. The professional land
surveyor shall include in his certificate information which is sufficient to
identify clearly the recorded map being reverted.

(b) Clearly and legibly drawn in black permanent
ink upon good tracing cloth or produced by the use of other materials of a
permanent nature generally used for such a purpose in the engineering profession.
Affidavits, certificates and acknowledgments must be legibly stamped or printed
upon the map with black permanent ink.

3. The size of each sheet of the final
map must be 24 by 32 inches. A marginal line must be drawn completely around
each sheet, leaving an entirely blank margin of 1 inch at the top, bottom and
right edges, and of 2 inches at the left edge along the 24-inch dimension.

4. The scale of the final map must be
large enough to show all details clearly and enough sheets must be used to accomplish
this end.

5. The particular number of the sheet and
the total number of sheets comprising the final map must be stated on each of
the sheets and its relation to each adjoining sheet must be clearly shown.

Sec. 74. NRS 329.130 is
hereby amended to read as follows:

329.130 Surveyor
means any person who is [authorized]licensed
pursuant to chapter 625 of NRS to practice land surveying.

Sec. 75. NRS 341.100 is
hereby amended to read as follows:

341.100 1. The
board may appoint a manager. The manager, with the approval of the board, may
appoint a deputy for professional services and a deputy for administrative,
fiscal and constructional services. In addition, the manager may appoint such
other technical and clerical assistants as may be necessary to carry into
effect the provisions of this chapter.

2. The manager and his deputies are in
the unclassified service of the state. Except as otherwise provided in NRS
284.143, the manager and each deputy shall devote his entire time and attention
to the business of his office and shall not pursue any other business or
occupation or hold any other office of profit.

3. The manager and his deputy for
professional services must each be a [registered]licensed
professional engineer pursuant to the provisions of chapter 625 of NRS or an
architect [licensed under]registered pursuant to
the provisions of chapter 623 of NRS. The deputy manager for administrative,
fiscal and constructional services must have a comprehensive knowledge of
principles of administration and a working knowledge of principles of
engineering or architecture as determined by the board.

4. The manager shall:

(a) Serve as the secretary of the board.

(b) Manage the daily affairs of the board.

(c) Represent the board before the legislature.

(d) Prepare and submit to the board, for its
approval, the recommended priority for proposed capital improvement projects
and provide the board with an estimate of the cost of each project.

(e) Make recommendations to the board for the
selection of architects, engineers and contractors.

(f) Make recommendations to the board [regarding]concerning the acceptance of completed
projects.

(g) Advise the board and the legislature, or the
interim finance committee if the legislature is not in session, on a monthly
basis of the progress of all public works projects which are a part of the
approved capital improvement program.

Sec. 76. NRS 408.163 is
hereby amended to read as follows:

408.163 The
director:

1. Is in the unclassified service of the
state.

2. Must be a [registered]licensed
professional engineer in the state.

3. Must have had at least 5 years of
responsible administrative experience in public or business administration.

4. Must possess broad skills as a manager
in areas related to the functions of the department.

(b) Must hold a masters degree in public or business
administration, hold the degree of bachelor of science in civil, structural,
mechanical or industrial engineering, or be a [registered]licensed
professional engineer.

(c) Must have at least 2 years of administrative
experience as the assistant director, the chief engineer [,] or the head of an engineering or
planning division of the department, or have equivalent experience.

2. The chief engineer:

(a) Is in the classified service of the state.

(b) Must be a [registered]licensed
professional engineer.

(c) Except as otherwise provided in subsection
3, must have at least 3 years of experience as the final engineering authority
for a states agency which has duties similar to those of the department.

3. If the director or deputy director is
a [registered]licensed professional
engineer, he may also act as the departments chief engineer.

Sec. 78. NRS 445B.275 is
hereby amended to read as follows:

445B.275 1. The
governing body of any district, county or city authorized to operate an air pollution
control program [under]pursuant to NRS
445B.100 to 445B.640, inclusive, may appoint an air pollution control hearing
board.

2. The air pollution control hearing
board appointed by a county, city or health district [shall]must consist of
seven members who are not employees of the state or any political subdivision
of the state. One member of the hearing board [shall]must be an
attorney admitted to practice law in Nevada, one member [shall]must be a
professional engineer [registered]licensed in Nevada
and one member [shall]must be licensed in
Nevada as a general engineering contractor or a general building contractor as
defined by NRS 624.215. Three [shall]must be
appointed for a term of 1 year, three [shall]must be
appointed for a term of 2 years and one [shall]must be
appointed for a term of 3 years. Each succeeding term [shall]must be for a
period of 3 years.

Sec. 79. NRS 496.035 is
hereby amended to read as follows:

496.035 1. An
employee of a municipality who is not [registered]licensed as a
professional land surveyor pursuant to chapter 625 of NRS may collect
information to be used exclusively by the municipality for preliminary planning
for development of new airports or air navigation facilities or improvements to
existing airports or air navigation facilities within the municipality.

2. If, based on the information collected
pursuant to this section, the municipality elects to initiate or proceed with
such a project, the municipality shall comply with the provisions of chapter 625
of NRS governing the:

(a) Preparation of the maps, plans,
specifications, reports and estimates required for the project; and

(b) Execution or supervision of all other
practices of land surveying associated with the project.

532.030 No
person [shall]may be appointed as
state engineer who is not a [registered]licensed
professional engineer [under]pursuant to the provisions of
chapter 625 of NRS and who does not have such training in hydraulic and general
engineering and such practical skill and experience as shall fit him for the
position.

Sec. 81. NRS 533.080 is
hereby amended to read as follows:

533.080 1. All
maps, surveys and measurements of water required pursuant to this chapter must
be made by a state water right surveyor. No survey, map or measurement of flow
of water may be approved by the state engineer unless the survey is made by a
state water right surveyor.

2. Any [registered] licensed professional
engineer or land surveyor, [qualified and
registered in this state,] who has a practical knowledge of
surveying or engineering and who is familiar with land surveying and mapping
and the measurement of water, and who is of good moral standing, must be
considered for appointment as a state water right surveyor upon application to
the state engineer. The application must be in the form prescribed by the state
engineer and accompanied by a fee of $50.

3. The state engineer may require any
applicant for appointment to the position of state water right surveyor to pass
such reasonable examination as to his qualifications as is provided by the
state engineer.

4. Whenever the state engineer approves
the qualifications of an applicant, he shall issue a certificate to the
applicant designating him as a state water right surveyor.

5. Every water right surveyors
certificate expires on June 30 of each year unless renewed by application in
the form prescribed by the state engineer. A fee of $20 must be paid each year
for renewal. All application and renewal fees must be accounted for in the
state engineers water license account, which is hereby created in the state
general fund, and must be used to pay costs pertaining to the certificate and
renewal and other costs associated with carrying out the provisions of this
section.

6. An appointment may be revoked by the
state engineer at any time for good cause shown.

7. The state engineer may provide such
additional regulations governing the qualifications and official acts of state
water right surveyors as are reasonable and not inconsistent with this chapter.

8. The State of Nevada is not liable for
the compensation of any state water right surveyor, but he is entitled to be
paid by the person employing him.

9. Officers and employees of the [United States]Federal Government are entitled to apply
for the position of state water right surveyor and are exempt from the [qualification of registration as]requirementthat a state water right surveyor must
be a professional engineer or professional land surveyor [required]set forth in subsection 2. Any certificate
issued to those officers and employees must include a restriction limiting
those officers and employees to work for the [United
States]Federal
Government.

Sec. 82. NRS 540A.100 is
hereby amended to read as follows:

540A.100 The
members of the commission appointed pursuant to NRS 540A.080 and 540A.090 may
not hold any elective governmental office but may be
engaged or employed in private enterprise or be employees of state or local
government and each member must be qualified pursuant to at least one of the
following subsections:

may be engaged or employed in private enterprise or be
employees of state or local government and each member must be qualified
pursuant to at least one of the following subsections:

1. A professional engineer [registered]licensed pursuant to the provisions of
chapter 625 of NRS with experience related to comprehensive planning, natural
resources or environmental protection;

2. A specialist in hydrology;

3. Experienced in law, management or
planning related to water;

4. Experienced in municipal finance;

5. Experienced in construction, planning
or operation of facilities or systems for supplying or treating water, for
collecting or treating sewage, for drainage of storm water, or for control of
floods; or

6. Knowledgeable in the areas of water
conservation, biology, natural systems, water quality and water management.

Sec. 83. NRS 543.510 is
hereby amended to read as follows:

543.510 1. The
board may:

(a) Appoint a chief engineer and general manager
who must be a civil engineer [registered]licensed
pursuant to the provisions of chapter 625 of NRS and may be selected from among
nominees proposed by the citizens advisory committee for the district.

(b) Prescribe the duties of officers, agents and
employees and fix their compensation.

(c) Create a technical committee for the
district. If the board of county commissioners constitutes the board of
directors, the technical committee must include one member and one alternate
appointed by the county and by each city within the district. If the regional
transportation commission constitutes the board of directors, the number of
members and alternates appointed respectively by the county and by each city
must be equal to the number of its representatives on the commission. The
citizens advisory committee for the district shall appoint one of its members
to the technical committee. The chief engineer and general manager is a member
of the technical committee and shall serve as its executive director. Each
member of the committee has one vote, except the member from the citizens
advisory committee and the chief executive and general manager, each of whom
may otherwise participate in the activities of and make recommendations to the
technical committee. The committee shall annually choose one of its members as
chairman.

2. The chief engineer and general manager
may hire and retain agents, employees, engineers and attorneys, and any other
persons necessary or desirable to effect the purposes of the district.

3. The board may contract with any agency
of the Federal Government for any services related to projects for the control
of floods in the district.

4. The district attorney, the county
surveyor, the county assessor, the county auditor or comptroller, the county
treasurer, their deputies, assistants, clerks and other employees are ex
officio officers, deputies, assistants, clerks and employees of the district.
They shall, if requested by the board, perform the same various duties for the
district as for the county. The board [must]shall reimburse
the county for the cost of rendering these services.